Under the current market structure in the TV industry advertising prices are typically set by TV channels while viewer prices are set by distributors (e.g., cable operators). The latter implies that the distributors partly internalize the competition between the TV channels, since they take into...

This paper develops an original model of product differentiation, to contribute to the debate about the regulation and finance of public television. It goes beond the conventional analysis in this topic, by showing the spillover effects that a public broadcaster can have upon commercial...