We consider a model of strategic informative advertising where the advertising is done on TV and where the TV channels …' advertising prices are endogenously determined. We discuss how these prices, and the advertising firms' advertising efforts, vary … channels is, the higher is the advertising price, and thus the less advertising is done. …

We consider a model where TV channels transmit advertising, and viewers dislike such commercials. We find that the less … differentiated the TV channels’ programs are, the lower is the amount of advertising in equilibrium. Relative to the social optimum …, there is underprovision of advertising if TV channels are sufficiently close substitutes. In such a situation, a merger …

Under the current market structure in the TV industry advertising prices are typically set by TV channels while viewer … the willingness to pay for rival channels. We find that a shift to a market structure where advertising prices as well as …

We consider a model of a TV oligopoly where TV channels transmit advertising and viewersdislike such commercials. We … 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... …