How Much Will Consumers Pay? A Hedonic Analysis of the Cable Television Industry

How Much Will Consumers Pay? A Hedonic Analysis of the Cable Television Industry Because cable television is the classic example of a bundled commodity, it is difficult to determine how consumers value individual cable networks offered on a typical system. This paper uses a modified hedonic framework to determine the marginal willingness to pay by consumers for individual cable networks. The traditional hedonic framework is adapted to allow for the lack of competition on the supply side of the market. It is clear that consumers do value some types of programming more than other types. Sports, news, and family programming all have positive implicit prices while program guides have negative marginal prices. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

How Much Will Consumers Pay? A Hedonic Analysis of the Cable Television Industry

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Publisher
Springer Journals
Copyright
Copyright © 2001 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/A:1011111329176
Publisher site
See Article on Publisher Site

Abstract

Because cable television is the classic example of a bundled commodity, it is difficult to determine how consumers value individual cable networks offered on a typical system. This paper uses a modified hedonic framework to determine the marginal willingness to pay by consumers for individual cable networks. The traditional hedonic framework is adapted to allow for the lack of competition on the supply side of the market. It is clear that consumers do value some types of programming more than other types. Sports, news, and family programming all have positive implicit prices while program guides have negative marginal prices.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Oct 3, 2004

References

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