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 8: Perfect Competition and Monopoly
In this chapter, we examine perfect competition and monopoly, the market structures at the opposite ends of the scale in terms of competitiveness. Although, as we mentioned in Chapter 7, none of the media industries is perfectly competitive, this industry structure is worth studying because it provides a base of comparison for examining the conduct and performance of media industries that operate under monopoly, monopolistic competition, or oligopoly.
This chapter should give you answers or insights into the following questions. Is local telephone service a natural monopoly? Why have governments traditionally asked regulators to set the rates for telephone calls? Why have some governments used competitive bidding to award cable TV franchises and allocate spectrum frequencies? If monopoly is ...