Publikace na Fakulta sociálních věd, Matematicko-fyzikální fakulta, Centrum pro ekonomický výzkum a doktorské studium |
2008
Abstrakt
When firms possess information about their competitors’ products, their advertisements may leak extra information. I analyze this within a duopoly television market that lasts for two periods.
Each station may advertise its upcoming program by airing a tune-in during the first program. Viewers may alternatively sample a program.
I find that each station’s equilibrium tune-in decision depends on both upcoming programs - thereby revealing more information than the actual content - when the sampling cost is sufficiently low. Otherwise, tune-in decisions are made independently.
It is welfare improving to ban tune-ins in the latter case but not in the former.