Issue 3

September 2004

The Choice of Commercial Breaks in Television Programs: The Number, Length and Timing

This paper examines the choice of commercial breaks by a television network in a monopoly setup.

The Adverstising Market in a Product Oligopoly

A model is developed in which producers in a differentiated product market compete in prices and informative advertising.

What Explains the Use of Direct-to-Consumer Advertising of Prescription Drugs?

Following the clarification of advertising regulation in 1997, direct-to-consumer advertising (DTCA) of prescription drugs has skyrocketed in the U.S., creating a controversy over the role of DTCA.

Sunk Costs and the Depth and Probability of Technology Adoption

I propose that sunk costs of learning and the output over which these costs are spread determine the probability and depth of technology adoption.

Patentability, Industry Structure, and Innovation

This paper presents a model of sequential innovation in which industry structure is endogenous and a standard of patentability determines the proportion of all inventions that qualify for protection (

How to Auction a Bottleneck Monopoly When Underhand Vertical Agreements are Possible

A seaport is awarded in a Demsetz auction to the operator bidding the lowest cargo-handling fee.