TV-Broadcasting Competition and Advertising

We analyse the rivalry between two TV-channels competing both on the market for audience and the market for advertising. We identify the nature of TV-programs emerging from this competition, and the quantity of advertising that TV-viewers will have to attend at equilibrium. Finally, we examine how a government’s regulation of this quantity will affect programs’ selection by the channels. CORE, Université catholique de Louvain LEQAM, Université d’Aix-Marseille II ECARE, Université libre de Bruxelles and LEI-CREST, Paris We are grateful to Armando Dominioni, Isabel Grilo and Jacques Thisse for their comments and remarks.