Hedonic Theory and the Demand for Cable Television

This research is aimed at establishing the demand for cable television service through an application of hedonic theory. Some revision of the standard hedonic model was required as consumers in this case are not faced with a choice from among a wide spectrum of commodities. The consumer must either...

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Bibliographic Details
Published in:The American economic review 1979-03, Vol.69 (1), p.183-189
Main Author: Ellickson, Bryan
Format: Article
Language:English
Subjects:
Bid prices
Cable television
Cable TV
Commodities
Consumer economics
Consumer surplus
Consumers
Demand
Demand curves
Economic models
Economic structure
Economic theory
Economics
Fees
Income estimates
Logical givens
Logistics
Market demand
Value
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Summary:This research is aimed at establishing the demand for cable television service through an application of hedonic theory. Some revision of the standard hedonic model was required as consumers in this case are not faced with a choice from among a wide spectrum of commodities. The consumer must either subscribe to the cable network, or not subscribe. The research should also provide insights into other areas where consumers are faced with only a single option. The modeling is based primarily on the work performed earlier by Roger Noll, Merton Peck, and John McGowan and by Rolla Park. A market demand equation for cable television service is developed based on application of this earlier work. However, significant modification was required to adjust the eariler equations from the view of independent household to an aggregate market behavior. Figures.
ISSN:0002-8282
1944-7981