COMPETITION FOR VIEWERS AND ADVERTISERS IN A TV OLIGOPOLY
We consider a model of a TV oligopoly where TV channels transmit advertising and viewersdislike such commercials. We show that advertisers make a lower profit the larger the numberof TV channels. If TV channels are sufficiently close substitutes, there will be underprovisionof advertising relative to social optimum. We also find that the more viewers dislike ads, themore likely it is that welfare is increasing in the number of advertising financed TV channels...