Media Economics : Applying Economics to New

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.

Adam Finn is the R. K. Banister Professor of Business and Professor of Marketing at the University of Alberta School of Business, where from 1995 to 2000 he was also Academic Director of the Canadian Institute of Retailing and Service.

1. Introduction and Overview

1

(16)

1.1 Why Media Economics?

1

(2)

1.2 What Is Economics?

3

(1)

1.3 Problems to Be Solved by Any Economy

4

(1)

1.4 Solving These Allocation Problems Under Different Economic Systems

5

(2)

1.5 Key Concepts

7

(2)

1.6 Economic Methodologies

9

(2)

1.7 Decision Making

11

(3)

1.8 Summary

14

(3)

2. Demand and Supply

17

(22)

2.1 Demand

18

(12)

2.2 Supply

30

(3)

2.3 The Determination of Market Price

33

(1)

2.4 But Aren't Prices Determined by Companies Rather Than by Supply and Demand?

34

(2)

2.5 Summary

36

(3)

3. Markets

39

(20)

3.1 Change in Demand

40

(1)

3.2 Effect of a Change in Demand on Price and Quantity

40

(2)

3.3 Causes of a Change in Demand

42

(6)

3.4 Change in Supply

48

(1)

3.5 Effect of Change in Supply on Price and Quantity

48

(2)

3.6 Causes of a Change in Supply

50

(4)

3.7 Further Applications

54

(2)

3.8 Summary

56

(3)

4. Consumer Behavior

59

(26)

4.1 The Law of Diminishing Marginal Utility

60

(2)

4.2 Consumer Equilibrium

62

(3)

4.3 The Effect of a Change in Price

65

(1)

4.4 Individual Demand and Consumer Surplus

65

(2)

4.5 Demand for Access and Demand for Usage

67

(3)

4.6 Demand When There Is an Access Fee But No Charge for Usage

70

(2)

4.7 Network Externalities

72

(1)

4.8 Consumption of Cultural Goods May Be Habit Forming

73

(1)

4.9 Attribute Theory

74

(4)

4.10 Consumer Sovereignty

78

(1)

4.11 The Equimarginal Principle

79

(2)

4.12 Summary

81

(4)

5. Production and Cost

85

(26)

5.1 Short Run, Long Run, and Very Long Run

86

(1)

5.2 Production in the Short Run

86

(1)

5.3 Costs in the Short Run

87

(4)

5.4 Long-Run Production and Cost

91

(15)

5.5 The Very Long Run

106

(1)

5.6 Summary

107

(4)

6. Revenue, Profit, Risk, and Managerial Decisions

111

(30)

6.1 Revenue

112

(3)

6.2 Identifying the Profit Maximizing Output and Price: Marginal Analysis

115

(4)

6.3 Incremental Analysis

119

(2)

6.4 Discounting and the Time Value of Money

121

(3)

6.5 Economic Profit Versus Accounting Profit

124

(8)

6.6 Uncertainty and Risk

132

(5)

6.7 Summary

137

(4)

7. Market Structure, Theory of the Firm, and Industrial Organization

141

(16)

7.1 Introduction to the Theory of the Firm

141

(3)

7.2 The Industrial Organization Framework

144

(11)

7.3 Summary

155

(2)

8. Perfect Competition and Monopoly

157

(24)

8.1 Perfect Competition

158

(10)

8.2 Monopoly

168

(4)

8.3 Performance: Perfect Competition and Monopoly Compared

172

(6)

8.4 Summary

178

(3)

9. Monopolistic Competition and Oligopoly

181

(34)

9.1 Monopolistic Competition

182

(3)

9.2 Oligopoly

185

(13)

9.3 Product Competition

198

(7)

9.4 Performance

205

(6)

9.5 Summary

211

(4)

10. Pricing and Market Segmentation

215

(32)

10.1 The Role of Costs in Pricing

216

(1)

10.2 The Role of Demand

217

(17)

10.3 New Product Pricing

234

(5)

10.4 Pricing Product Systems

239

(1)

10.5 Predatory Pricing

240

(1)

10.6 Congestion Costs and Pricing

241

(3)

10.7 Summary

244

(3)

11. Advertising

247

(14)

11.1 The Role of Advertising in a Market Economy

248

(1)

11.2 Significance of Advertising for Media Industries

249

(9)

11.3 Summary

258

(3)

12. Labor Markets

261

(26)

12.1 Determination of Wage Rate

262

(1)

12.2 Firm's Demand for Labor

263

(3)

12.3 Market Demand for Labor

266

(4)

12.4 Supply of Labor by an Individual

270

(2)

12.5 Market Supply of Labor

272

(2)

12.6 Labor Market Applications

274

(6)

12.7 Economic Rent, Superstars, and the Pull of Hollywood

280

(3)

12.8 Summary

283

(4)

13. Government Intervention

287

(24)

13.1 A Normative Analysis of Government Intervention

288

(1)

13.2 Efficient Resource Allocation in the Absence of Externalities

288

(2)

13.3 Externalities

290

(5)

13.4 Public Goods

295

(5)

13.5 Monopoly

300

(3)

13.6 Government Failure

303

(1)

13.7 Positive Theories of Government Intervention

304

(3)

13.8 Summary and Conclusion

307

(4)

14. International Trade

311

(20)

14.1 Comparative Advantage and Trade

311

(5)

14.2 Gains From Trade in the Real World

316

(1)

14.3 Sources of Comparative Advantage

317

(1)

14.4 Application: Why Does the United States Dominate Film and Television Program Production?

318

(2)

14.5 The Case for Protection

320

(1)

14.6 Application: Does the United States Dump Television Programs?

321

(2)

14.7 Application: Protection of Cultural Industries

323

(1)

14.8 Tariffs and Quotas

324

(2)

14.9 Application: Domestic Content Rules for Television Programming

326

(2)

14.10 Summary

328

(3)

References

331

(6)

Index

337

(18)

About the Authors

355

What is included with this book?

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.

FREE SHIPPING

Amazon no longer offers textbook rentals. We do!

Media Economics : Applying Economics to New and Traditional Media

Summary

Author Biography

Table of Contents

Supplemental Materials