The Effects of Introducing Advertising in Pay TV: A Model of Asymmetric Competition between Pay TV and Free TV

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Helmut M. Dietl; Markus Lang; Pannlang Lin; (2012)
  • Subject: Asymmetric competition, advertising, television broadcasting, media | Manufacturing network, Manufacturing plant, Global operations management, Lead factory, Knowledge transfer
    • jel: jel:L10 | jel:D40
    acm: ComputingMilieux_MISCELLANEOUS

This paper develops a theoretical model of asymmetric competition between a pay TV and a free TV broadcaster. Our model shows that the pay TV broadcaster has incentives to place advertising on its channel if the marginal return on advertising exceeds the viewers' disuti... View more
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