Time Schedule and Program Profile: TV News in Norway and Denmark |
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Authors: | Tore Nilssen Lars Sørgard |
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Institution: | Department of Economics University of Oslo P.O. Box 1095 Blindern N-0317 Oslo, Norway.;Department of Economics Norwegian School of Economics and Business Administration Helleveien 30 N-5035 Bergen-Sandviken, Norway. |
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Abstract: | Two TV channels compete on programming with respect to both time schedule (continuous choice) and program profile (discrete choice), with a directional constraint concerning time schedule (viewers cannot watch TV before they get home). We show how the relative importance of program profile and time schedule, as perceived by the viewers, determines the equilibrium outcome. Furthermore, we find that there is a first-mover disadvantage in a sequential game where one channel sets its two choice variables before its rival does, and a first-mover advantage in a semise-quential game where the channels set time schedules sequentially and thereafter set program profiles simultaneously. The results are applied to the Norwegian and Danish markets for TV news, where number-two channels have challenged the incumbents. |
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