Skip navigation
Skip navigation

Cultural quotas in broadcasting II: policy

Richardson, Martin

Description

This paper considers the application of ‘cultural quotas’ to radio broadcasting: a requirement that a minimum percentage of broadcast content be of local origin. Using a Hotelling location model derived in Richardson (2004) we show that, while the laissez-faire solution involves less than (socially optimal) maximal differentiation, a quota reduces the differentiation between the stations even further. While a cultural quota may raise consumer welfare, the reduced station diversity and...[Show more]

dc.contributor.authorRichardson, Martin
dc.date.accessioned2004-11-30
dc.date.accessioned2005-03-10
dc.date.accessioned2011-01-05T08:25:26Z
dc.date.available2005-03-10
dc.date.available2011-01-05T08:25:26Z
dc.date.created2004
dc.identifier.urihttp://hdl.handle.net/1885/42673
dc.identifier.urihttp://digitalcollections.anu.edu.au/handle/1885/42673
dc.description.abstractThis paper considers the application of ‘cultural quotas’ to radio broadcasting: a requirement that a minimum percentage of broadcast content be of local origin. Using a Hotelling location model derived in Richardson (2004) we show that, while the laissez-faire solution involves less than (socially optimal) maximal differentiation, a quota reduces the differentiation between the stations even further. While a cultural quota may raise consumer welfare, the reduced station diversity and advertising levels monotonically lower overall social welfare. We consider two other policies – a limit on advertising and a publicly provided non-commercial station – and show that both also reduce diversity, compared to the laissez-faire solution. An advertising cap is not as effective as the quota in achieving greater airplay for local content for least welfare cost but a public station can be, depending on the magnitude of its associated fixed costs.
dc.format.extent249678 bytes
dc.format.extent350 bytes
dc.format.mimetypeapplication/pdf
dc.format.mimetypeapplication/octet-stream
dc.language.isoen_AU
dc.subjectpublic broadcasting
dc.subjectlocal content requirement
dc.titleCultural quotas in broadcasting II: policy
dc.typeWorking/Technical Paper
local.description.refereedno
local.identifier.citationmonthjul
local.identifier.citationyear2004
local.identifier.eprintid2856
local.rights.ispublishedyes
dc.date.issued2004
local.contributor.affiliationANU
local.contributor.affiliationFaculty of Economics and Commerce
local.citationSeries in Economics and Econometrics no.443
CollectionsANU Research Publications

Download

File Description SizeFormat Image
wp443.pdf243.83 kBAdobe PDFThumbnail
2856-~I6.XSH350 BUnknown


Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.

Updated:  19 May 2020/ Responsible Officer:  University Librarian/ Page Contact:  Library Systems & Web Coordinator