TY - JOUR
T1 - Direct Competition in Cable Television Delivery
T2 - A Case Study of Paragould, Arkansas
AU - Barrett, Marianne
PY - 1995/7/1
Y1 - 1995/7/1
N2 - In this study I explored the effects of the development of direct competition in the delivery of cable services to a small Arkansas city. The emergence of competition produced lower prices, better customer service, increased choices in programming, and technological improvements as the market structure moved from monopoly to duopoly and achieved an equilibrium in which each service company serves a 50% market share. Because neither firm is producing a profit under the current situation, I argue that in the long-run the competitors may switch to oligopolistic pricing behavior and focus on nonprice competition in an effort to achieve profitability.
AB - In this study I explored the effects of the development of direct competition in the delivery of cable services to a small Arkansas city. The emergence of competition produced lower prices, better customer service, increased choices in programming, and technological improvements as the market structure moved from monopoly to duopoly and achieved an equilibrium in which each service company serves a 50% market share. Because neither firm is producing a profit under the current situation, I argue that in the long-run the competitors may switch to oligopolistic pricing behavior and focus on nonprice competition in an effort to achieve profitability.
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U2 - 10.1207/s15327736me0803_1
DO - 10.1207/s15327736me0803_1
M3 - Article
AN - SCOPUS:0039064751
SN - 0899-7764
VL - 8
SP - 77
EP - 93
JO - Journal of Media Economics
JF - Journal of Media Economics
IS - 3
ER -