标题：Program Quality Competition in Broadcasting Markets
作者：Li, Changying; Zhang, Jianhu
作者机构：[Li, Changying; Zhang, Jianhu] Shandong Univ, Sch Econ, 27 Shanda South Rd, Jinan 250100, Shandong, Peoples R China.
通讯作者地址：[Li, CY]Shandong Univ, Sch Econ, 27 Shanda South Rd, Jinan 250100, Shandong, Peoples R China.
来源：JOURNAL OF PUBLIC ECONOMIC THEORY
摘要：This paper develops a duopoly model where broadcasters first choose their program quality and then their pricing strategy. Two alternative financing schemes are considered: pay-TV and free-to-air. We find that, from a welfare perspective, a pay-TV regime always generates inadequate quality and advertising, whereas free-to-air might produce excessive quality and advertising. In the case of asymmetric competition, a pay-TV broadcaster always has a stronger incentive to conduct research and development than a free-to-air broadcaster does. Both platforms could either over- or underinvest. The pay-TV broadcaster always shows too few advertisements, but the free-to-air media might act in the opposite manner.