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Prague Economic Papers
Article . 2002 . Peer-reviewed
License: CC BY NC ND
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Prague Economic Papers
Article
License: CC BY NC ND
Data sources: UnpayWall
SSRN Electronic Journal
Article . 2002 . Peer-reviewed
Data sources: Crossref
SSRN Electronic Journal
Article . 2002 . Peer-reviewed
Data sources: Crossref
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Optimal Timing of TV Commercials: Symmetrical Model

Authors: Tomas Kadlec;

Optimal Timing of TV Commercials: Symmetrical Model

Abstract

In this paper I study the behavior of two TV broadcasters on a market where viewers perpetually make a decision whether to watch TV and which TV channel to watch. Both broadcasters optimally allocate time periods where their TV program is replaced by advertising. While TV programs represent broadcaster's costs, commercials bring in revenue that is proportional to the audience reach. I assume that viewers choose among products and the outside option following a Markov process where probabilities of transition reflect various attractiveness of the products. Given symmetrical positions of the broadcasters, I prove that their optimal strategy is to put their commercial breaks into the same or very close times. In the case when commercials overlap perfectly, both broadcasters are better off if they fragment their breaks into shorter breaks keeping the total amount of commercial time the same.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
Average
Average
Average
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