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Abstract ▼ AI-Helper

The exclusive broadcasting of the 2010 Vancouver Winter Olympic Games and 2010 FIFA World Cup in South Africa by SBS resulted in controversy by raising issues such as ① the potential infringement of universal access, ② the outflow of national wealth due to the soaring broadcasting rights fee, and ③ ...

The exclusive broadcasting of the 2010 Vancouver Winter Olympic Games and 2010 FIFA World Cup in South Africa by SBS resulted in controversy by raising issues such as ① the potential infringement of universal access, ② the outflow of national wealth due to the soaring broadcasting rights fee, and ③ the difficulty in ensuring the rights of viewers in choice of channels. This paper examines these issues and suggests how to improve the universal access system in Korea. We show using a game theoretic model of the broadcasters’ competition in acquiring broadcasting rights of a major sports event that maintenance of cooperation, though it beneficial to all stations, cannot be an equilibrium. Under the assumption of negative externalities, all broadcasters suffer losses at the unique Nash equilibrium of the game. So a relevant penalty system is essential in order to make a self-enforcing agreement possible as needed to maintain the cooperative system of the newly recovered Korea Consortium. In order to maximize the total welfare of viewers for major sports events, we suggest 1 game-2 stations co-broadcasting with sequential programming as the best way to harmonize the viewers" right of choice within the program and between programs.

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