Welfare analysis of regulations on media platform advertising

Abstract

This paper estimates the welfare effects of TV advertising regulation. I develop a structural model of demand and supply in which both the broadcast content and the amount of advertising are endogenously determined. My results suggest that more varied content, and, in particular, more educational content, can be offered in a laissez-faire equilibrium. Children and teenagers would watch more educational content as more of this type of programming becomes available. Total consumer welfare is higher in a laissez-faire equilibrium than that under the current advertising restrictions.