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Tilburg Law and Economics Center

TILEC supports and stimulates academic research on the governance of economic activity. It fosters academically path breaking and practically relevant research and aims to be a leading center worldwide.

TILEC Work in Progress: Ittai Shacham

Information vs. Regulation: a case study of Israeli television
10:45-11:45, M 1003

Many a time, regulation aims to protect consumers. A major justification for regulatory intervention lies in the presence of frictions restricting the consumers’ ability to make informed choices, thereby constraining the disciplining power of the market. Moreover, often, the friction is informational, in that consumers lack the relevant information to make the informed choice. Broadcast television provision is exemplary of this phenomenon: channels fund free-to-view content via commercials which are perceived as a nuisance by viewers. The ambiguity surrounding the timing and length of commercial breaks generate the aforementioned informational friction. In Israel, as in many other countries, advertisements in broadcast television is highly regulated with respect to amount and timing. Using a structural model and high-frequency viewership data from Israel, I aim to highlight the welfare effects of a price-regulation scheme as opposed to an alternative regulatory scheme which relaxes the current regulations and provides viewers the necessary information to overcome the friction.

In this talk Ittai will present the theoretical underlays of the model and initial estimates.

When: 05 September 2018 10:45

End date: 05 September 2018 11:45

Where: Montesquieu building