Welfare Effects of Public Service Broadcasting in a Free-to-Air TV Market

Julia Rothbauer, Gernot Sieg
2011 Social Science Research Network  
Viewer's private information consumption generates external benefits for society, because information improves the ability of voters to control politicians. Our study compares two settings in a free-to-air TV market: a differentiated duopoly of private channels and an oligopoly with both private channels and a public service broadcaster broadcasting information as well as entertainment programs. We find that welfare effects of public service broadcasting depend on its program design and cost
more » ... iciency, the external benefits of voter's information, and the magnitude of lost rents from the advertising market. JEL: L82; D72; L32
doi:10.2139/ssrn.1935910 fatcat:wgbvjqzdlvgdlmclgl3exqwcna