The DOI matches its Crossref record; 29 of the 29 references it cites were found in a registry or an index.
The Consumer Gains from Direct Broadcast Satellites and the Competition with Cable TV
Abstract
This paper examines direct broadcast satellites (DBS) as a competitor to cable. We first estimate a structural consumer level demand system for satellite, basic cable, premium cable and local antenna using micro data on almost 30000 households in 317 markets, including extensive controls for unobserved product quality and allowing the distribution of unobserved tastes to follow a fully flexible multivariate normal distribution. The estimated elasticity of expanded basic is about -15, with the demand for premium cable and DBS more elastic. The results identify strong correlations in the taste for different products not captured in conventional logit models. Estimates of the supply response of cable suggest that without DBS entry cable prices would be about 15 percent higher and cable quality would fall. We find a welfare gain of between $127 and $190 per year (aggregate $2.5 billion) for satellite buyers, and about $50 (aggregate $3 billion) for cable subscribers.
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Cites
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Cited by
Discrete Choice Methods with Simulation
Train, K. E. (2001) · doi:10.1017/cbo9780511805271 · Cited by 7,784
The Welfare Effects of Bundling in Multichannel Television Markets
Crawford, G. S., & Yurukoglu, A. (2012) · American Economic Review · doi:10.1257/aer.102.2.643 · Cited by 448
Dynamics of Consumer Demand for New Durable Goods
Gowrisankaran, G., & Rysman, M. (2012) · Journal of Political Economy · doi:10.1086/669540 · Cited by 322
Beresteanu, A., & Li, S. (2011) · International Economic Review · doi:10.1111/j.1468-2354.2010.00623.x · Cited by 289
Metadata
- Authors
- Goolsbee, A., & Petrin, A.
- Venue
- Econometrica
- Publisher
- The Econometric Society
- Published
- 2004-03
- Volume
- 72
- Issue
- 2
- Pages
- 351-381
- ISSN
- 0012-9682 (ISSN-L)
- 1468-0262
- OpenAlex
- W3124203415
- Cited by
- 359
- References
- 29
- FWCI
- 42.67
- Type
- journal article
- Language
- en
- Open access
- closed
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