The Market Information System and Personalized Exchange: Business Practices in the Market for Television Audiences

Abstract

This study explores the economics of buying and selling audiences in the television advertising market by examining selected characteristics of the market information system. Neoclassical economic theory often assumes an anonymous marketplace in which information is perfect and readily available to all trading partners. Based on interviews with market participants, I argue that these assumptions do not hold in the real world. Buyers and sellers of advertising are aware that their identities influence trade opportunities: Dishonest business dealings today will affect tomorrow's prospects. They develop personal networks that ensure access to credible information.