Pages

 

The BBC

0 comments
Does not do economics. Does not believe in it. Anything vaguely related to economic reasoning is alien to anything that has anything to do with the Beeb. Check this one out:

The likes of Jonathan Ross and Chris Moyles are not receiving salaries above the market rate, according to a review of how the BBC pays its top names.


That’s not taking into account the fact that the BBC has massive price-setting power, being by far the biggest broadcaster in the land (and controlling 2 of the 5 terrestrial channels, only one of which has anything near it’s market share)... I would also think that Jonathan Ross, Chris Moyles, etc pretty much ARE the supply side of the market for extremely well-known and trustworthy TV presenters.

So, over-simplifying but just a little, the report says that the BBC does not pay more for its stars than what the BBC pays for its stars. Nice.

And ignoring market structure completely, they utterly fail to understand what the law of one price implies. ‘The BBC does not pay more than others’ – what’s the alternative? That they paid more than ITV for the same thing just for the fun of it?

I want my license fee back! And yes, I love Dr. Who and Have I Got News for You, but £130 a year?

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)
  • Greenspan's Cult of Personality... Review topics and articles of economics: Alan Greenspan was a legend in his time and there was no shortage of praise for him back then. For example, who can forget Bob Woodow's 2000 book Maestro: Greenspan's...
  • Yes Tyler, Low Interest Rates Matte... Tyler Cowen is wondering whether the Fed's low interest rates in the early-to-mid 2000s really were that important to the credit and housing boom of the early-to-mid...
  • The Eurozone Crisis: Deja Vu... Review topics and articles of economics: Randal Forsyth sees similarities between the current unfolding of the Eurozone crisis and that of the U.S. financial crisis a few years back:Just as the problem on this...
  • Charles Plosser and the Burden of F... The Economist's Free Exchange blog is shocked to hear this from Federal Reserve Bank of Philadelphia President Charles Plosser:"Since expectations play an important role...
  • Arnold Kling and Expected Inflation... Review topics and articles of economics: What do we know about expected inflation? According to Arnold Kling not much if we look to financial markets:I'm also not convinced that we can read expected inflation...
  • A Paper on Stabilizing Nominal Spen... Given the recent discussion on stabilizing nominal spending as a policy goal I found this article by Evan F. Koenig of the Dallas Fed to be interesting: The article...
  • Why The Low Interest Rates Mattered... Review topics and articles of economics: This is the second of two posts detailing why the Fed's low interest rate policies in the early-to-mid 2000s was one of the more important contributors to the credit and...
  • Why The Low Interest Rates Mattered... This is the first of a two-part follow up to my previous post, where I argued that the Fed's low interest rate policy was a key contributor to the credit and housing...
  • The Stance of Monetary Policy Via t... Review topics and articles of economics: There has been some interesting conversations on the stance of monetary policy in the past few days between Arnold Kling, Scott Sumner, and Josh Hendrickson. Part of...
  • Scott Sumner's New Best Friend:... Joseph Gagnon is calling for $6 trillion more in global monetary easing. This should not be too hard to implement since the Fed is a monetary superpower.Update: The...
 
Review topics and articles of economics © 2011 The BBC