TY  - JOUR
AU  - Sweeting,Andrew
TI  - Dynamic Product Repositioning in Differentiated Product Markets: The Case of Format Switching in the Commercial Radio Industry
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13522
PY  - 2007
Y2  - October 2007
UR  - http://www.nber.org/papers/w13522
L1  - http://www.nber.org/papers/w13522.pdf
N1  - Author contact info:
Andrew Sweeting
Department of Economics
213 Social Sciences
Box 90097
Duke University
Durham, NC 27708
Tel: 919 660 1883
E-Mail: atsweet@duke.edu
AB  - The ability of firms to reposition their products can determine the effects of demand shocks, mergers and policy interventions in differentiated product markets. This paper estimates a dynamic oligopoly model to measure repositioning costs in the commercial radio industry. Based on a set of markets where industry revenues were around $88 billion, I find that stations may have spent as much as $6 billion on repositioning. However, repositioning costs are not large enough to prevent radio markets adapting quite quickly to demand shocks.
ER  -