The Effects of Introducing Advertising in Pay TV: A Model of Asymmetric Competition between Pay TV and Free TV

The television broadcasting industry is of crucial economic and social importance. Traditionally, this industry has been dominated by free-to-air TV (FTV) but due to technological progress, subscription-based pay TV (PTV) has emerged as a competing business model. A key question for the PTV broadcasters is whether to air commercials in addition to charging subscription fees. Based on a theoretical model of asymmetric competition between a PTV and an FTV broadcaster, we examine the effects of placing PTV advertising on broadcaster market strategies, viewer demands, broadcaster profits and consumer surplus. We find that introducing advertising on PTV can induce a higher viewer demand on this channel but a lower viewer demand on the FTV channel. Surprisingly, consumers can benefit through the introduction of advertising in PTV and broadcaster profits can increase if the viewer disutility of advertising is sufficiently large. Our study provides an analytical framework for choosing and implementing an optimal PTV strategy when an FTV competitor preexists in the market. Furthermore, our study derives implications for policymakers and regulatory authorities by showing that additional PTV advertising is not necessarily socially undesirable due to the strategic market reactions

THE EFFECTS OF A MOUNTAIN ON THE PROPAGATION OF PRE-EXISTING CONVECTION FOR DIFFERENT FROUDE NUMBER FLOW REGIMES

In this research, the tendency for squall lines to stagnate upstream of mountain ranges is investigated through a series of 2-dimensional, idealized simulations where the basic state wind was varied from 1 m s−1 to 20 m s−1. These simulations included a set of simulations with no pre-existing convection but with a mountain (MO), a set with pre-existing convection, but no mountain (SO), and a set with both the pre-existing convection and the mountain (SM). These simulations show stagnation is dependent on the Froude number of the basic state flow with stagnation appearing to occur for smaller Froude number flow regimes. For subcritical Froude number flow, the greatest precipitation accumulations were found well upstream of the mountain. This maximum in precipitation was larger than that for either the MO and SO simulations and, additionally, was farther upstream than the maxima in either of these simulations. For critical Froude number flow, the SM simulations exhibited two precipitation maxima. The upstream maximum was colocated with the precipitation maximum in the SO simulation, while the downstream maxima was colated with that in the MO simulation. Finally, for supercritical flow, the precipitation maximum in the SM simulation was positioned over the peak of the mountain. This maximum was smaller than in the MO simulation