January 2016
Beginner
562 pages
21h 17m
English
Content preview from Handbook of Media Economics, vol 1A
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payments in influencing market outcomes,
46
and analyzing content choice in television
markets.
47
Other unanswered questions include how consumers trade off price versus
quality, what factors influence firms’ (possibly dynamic) quality choices, and determining
what is the connection between competition and quality. These are all first-order inputs
into television market welfare that require substantially more empirical research. The
next section summarizes those extensions to the simple theory model that have been
made and the empirical research that relies on them.
7.4. EXTENSIONS TO THE SIMPLE MODEL: “THE FOUR BS”
While the simple model above gives important testable predictions about outcomes in
television markets, there are aspects of the industry ...
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