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Economic Approaches to Media Policy
Introduction
Traditional media and communication policy-making and regulatory bodies have relied primarily upon social, cultural, and political approaches in analyzing issues, developments, and potential policy responses. However, economic approaches increasingly now play a greater role in media and communication policy-making. These approaches are being used in the belief that economic analysis offers a fundamentally important means for studying choices and alternatives – and their potential outcomes – under a wide variety of conditions and settings.
Economic approaches apply a variety of perspectives, models, and theories to inform choices involving media structures and operations and how the available alternatives can be used to achieve desired policy outcomes. Analysis involves consideration of the economic effects of policies on the media industries, firms, consumers, and society. Economic approaches are being used in a wide range of media and communication policy-making settings to answer questions such as the following: What will be the effect of an increasing number of broadcast stations on the operation of existing stations? What levels of subsidy will be necessary to provide universal broadband telecommunication services to rural areas? Will a merger of media firms produce concentration that is harmful to consumers? How can the increased domestic production of films be promoted? How can media services be provided ...
