CMC 210 Week 4 Government-Fostered Ownership-original

CMC 210 Week 4 Government-Fostered Ownership-original -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Government – Fostered Ownership Once with the developing of radio industry in USA came strict measures named by the Federal Communication Commissions, which was the one that provided license to broadcasters.Non of the less, the state, through the Federals tried to supprime the number of companies that were operating in this area. Thus the state helped on the formation of oligopol in this radio industry in USA, oligopol which could lead to a monopol. An outgoing from olygopol to monopol will be possible only if the state would encourage it. Now, the FCC and the state doesn’t want to get rid the market from the biggest competitors and wants to keep the olygopol because it`s easier to control rather than a big number of smaller companies. Also this fact has some strategic interests which regards the state. If the state makes a reregulation of this industry of radio the risk of getting a monopoly in the radio market grows exponentialy. It is good to observe that the initial competition in the radio market was bigger and more liberal in comparison with the actual one because of the higher number of participants in this competition. In fact, the market developed acording to the principles of the open market, until the state together with the FCC interfered through the strictness of the rules. These had begun in the 80’s and culminated in the 90’s(Chomsky, 1997). The interference of the state in the development of this industry had a great influence and helped by improving the position of the greater companies while the smaller ones were
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 2

CMC 210 Week 4 Government-Fostered Ownership-original -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online