Optimal Divisionalization of Cable Television Operators Networks

25 Pages Posted: 16 Jun 2003

See all articles by João Leitão

João Leitão

University of Beira Interior, Department of Management and Economics; Technical university of Lisbon, Centre for Management Studies of Instituto Superior Técnico (CEG-IST); Instituto Multidisciplinar de Empresa

Date Written: April 2003

Abstract

In this article, a condition for the optimal division's number is presented, for a market with two cable operators who offer a network service. First, a reason is presented to justify a partial covering of the national market from the cable operators. Second, a problem of moral hazard is revealed, which is able to appear through the implementation of franchising schemes with independent divisions.

Keywords: Optimal Divisionalization, Franchising, Vertical Integration

JEL Classification: L11, L20, M55

Suggested Citation

Leitão, João, Optimal Divisionalization of Cable Television Operators Networks (April 2003). Available at SSRN: https://ssrn.com/abstract=394241 or http://dx.doi.org/10.2139/ssrn.394241

João Leitão (Contact Author)

University of Beira Interior, Department of Management and Economics ( email )

Faculty of Social Sciences and Humanities
Estrada do Sineiro
Covilha, 6200 209
Portugal
+351275319620 (Phone)

HOME PAGE: http://https://www.ubi.pt/Pessoa/jleitao

Technical university of Lisbon, Centre for Management Studies of Instituto Superior Técnico (CEG-IST) ( email )

Lisbon
Portugal

HOME PAGE: http://www.ist.utl.pt

Instituto Multidisciplinar de Empresa ( email )

Campus Miguel de Unamuno
ES-37007 Salamanca, Salamanca 23007
Spain

HOME PAGE: http://https://imeusal.com/

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