Media Economics: Applying Economics to New and Traditional Media differs from ordinary media economic texts by taking a conceptual approach to economic issues. As the book progresses through economic principles, authors Colin Hoskins, Stuart McFadyen, and Adam Finn use cases and examples to demonstrate how these principles can be used to analyze media issues and problems. Media Economics emphasizes economic concepts that have distinct application within media industries, including corporate media strategies and mergers, public policy within media industries, how industry structure and changing technologies affect the conduct and performance of media industries, and why the United States dominates trade in information and entertainment.
Chapter 7: Market Structure, Theory of the Firm, and Industrial Organization
Why is the market power of cable television franchises less today than it was 10 years ago but nevertheless still much greater than that enjoyed by radio stations or magazine publishers? How can we determine how competitive a given industry (e.g., book publishing) is? How should we go about analyzing media industries? How does market structure affect firm and industry conduct and performance? What competitive strategies do companies use to compete, and how does this vary with the market structure of the industry? What are the dimensions of industry performance? How has digitalization affected competition in media industries? This chapter will provide insights into these and other questions.