Monopoly Provision of Tune-ins∗

This paper analyzes a single television station’s choice of airing tune-ins (preview advertisements). I consider two consecutive programs located along a unit line. Potential viewers know the earlier program but are uncertain about the later one. They may learn its location through a tune-in if they watch the earlier program and the television station chose to air a tune-in, or by sampling it for a few minutes. If the sampling cost is sufficiently low, the unique perfect Bayesian equilibrium (PBE) exhibits no tune-ins. If it is sufficiently high, the unique PBE involves a tune-in whenever the two programs are similar enough. For all other values of the sampling cost, either PBE may arise. When the programs are also quality-differentiated, the willingness to air a tune-in, and thus to disclose location information, may be sufficient to signal high quality without any dissipative advertising.