Tuesday, February 12, 2013

Vertical Integration in Spanish TV


Ricard Gil and Christian A. Ruzzier have a new paper investigating Spanish TV stations' decisions to generate their own content, "'Make or Buy' as Competitive Strategy: Evidence from the Spanish Local TV Industry." Essentially, they want to know if greater competition leads to more or less vertical integration.

Exploiting regulation-induced shocks to entry barriers and differences in regulation enforcement across cities to obtain a source of exogenous variation in product-market competition, we establish a negative causal effect of competition on vertical integration in the setting of the Spanish local television industry between 1995 and 2002.

 Why would this be the case? With less competition, the markups for both content provision and for local distribution are higher. This increases the double marginalization problem and firms may vertically integrate even if it reduces productivity. When this problem diminishes, the double markup problem is not worth solving through vertical integration.

7 comments:

  1. I was very happy that I discovered this website. I needed to thank you for this excellent information well basically im a travel agent and we offers Cheap umrah Packages. I have bookmark this page and after work I read interesting things to update myself and to refresh my mind.

    ReplyDelete
  2. I really impressed after read this because of some quality work and informative thoughts well basically im a travel agent and we Cheap hajj Packages. I have bookmark this page and after work I read interesting things to update myself and to refresh my mind. I just wanna say thanks for the writer and wish you all the best for coming.

    ReplyDelete
  3. Fantastic beat ! I would like to apprentice at the same time as you amend your site, how can i subscribe for a weblog site? We are a top Iraqi Dinar dealer on internet, be the first to secure your future.

    ReplyDelete
  4. Thank you for the good writeup. It in reality was once a amusement account it. Glance complicated to far introduced agreeable from you!
    We are top iraqi business news website and will share latest Iraqi Dinar News and we will make your future secure.

    ReplyDelete
  5. Very fantastic and well-written article.It,s extremely good and very helpful for me.Thanks for sharing this great article.

    ReplyDelete
  6. I impressed from your work after reading this article.This is a nice work and good effort from you. :)

    ReplyDelete
  7. That is great.Thank you for sharing this great post. :)

    ReplyDelete