An analysis of barter in the broadcasting industry

Abstract

Purpose

The purpose of this paper is to address differences in bartering between markets and firms, as this mode of transaction has become a norm in the broadcasting industry in the sale of advertising air time and the purchase of programs.

Design/methodology/approach

Panel data from television stations in the USA is used to investigate the impact of a group of market‐specific and firm‐specific factors on the level of barter advertisement.

Findings

The results from the random effects regressions show that general economic conditions in the national market, such as unemployment and inflation, profitability of the station, and events such as the Olympics and election cycles affect the level of barter among television stations.

Originality/value

This paper contributes to filling a significant void in the empirical microeconomic analysis of barter transaction by providing an example from the broadcasting industry.

Citation

Marvasti, A. (2012), "An analysis of barter in the broadcasting industry", Journal of Economic Studies, Vol. 39 No. 5, pp. 537-553. https://doi.org/10.1108/01443581211259464