Is Radio Advertising a Distinct Local Market? An Empirical Analysis
18 Pages Posted: 10 Sep 2010
Date Written: 1999
The recent relaxation of regulations limiting the ability of an entity to own multiple radio stations had led to a dramatic increase in ownership concentration in local radio markets. Using the framework established by the Merger Guidelines, this paper evaluates whether or not radio advertising is a distinct local market by estimating an own-price elasticity oif demand for radio advertising. Our results support the assertion that radio advertising is an antitrust market.
Keywords: Broadcasting, Market Definition, Radio, FCC, Regulation
JEL Classification: L5
Suggested Citation: Suggested Citation