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Regulation in the cable televisión industry

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Author/s:
Hatrick, Agustina
Montamat, Giselle
Ries, Vivian Alexis
Advisor/s:
Raybaudi Massilia, Marzia
Universidad Torcuato Di Tella
Thesis degree name:
Licenciatura en Economía
Date:
2013
Abstract
Beyond any political implications surrounding the regulation of media, the purpose of this work is to study the mechanism through which prices of channels are set in the television industry and to analyse the impact that measures which attempt to disolute big media corporations may have on total producer surplus. Following much of the literature that exists on this subject, we model the TV industry by means of a chain of production in which two program providers, the upstream firms, sell their channels to one monopolistic cable operator, the downstream firm. We do not allow for competition between upstream firms to avoid technicalities regarding product differentiation (for more on oligopolistic competition between upstream firms, see Bourreau, Hombert et al. 2010); instead, we think of each channel as unique and each program provider as a monopoly of the content it sells. We do allow for heterogeneity in the consumers´ valuation for each channel. Under this setting, we study how the interaction between the members of the chain and the prices they set is affected when firms that are initially integrated are obliged to desintegrate. As we shall see, one of the consequences that we will encounter is the well-known vertical externality of double marginalization, first introduced and studied by Cournot (1838)-Spengler (1950).
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URI:
https://repositorio.utdt.edu/handle/20.500.13098/1505
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Horarios de atención
Campus Alcorta
Av. Figueroa Alcorta 7350 (C1428BCW)
Sáenz Valiente 1010 (C1428BIJ)
Ciudad de Buenos Aires, Argentina
P: (54 11) 5169 7000

 

 



Página de ayuda al investigador
Horarios de atención
Campus Alcorta
Av. Figueroa Alcorta 7350 (C1428BCW)
Sáenz Valiente 1010 (C1428BIJ)
Ciudad de Buenos Aires, Argentina
P: (54 11) 5169 7000