Nonmarket strategies of media enterprises in the Mexican television industry

Abstract

This paper describes and analyzes the nonmarket strategies of the Mexican television duopoly in order to reach an understanding of how firms gain and maintain first-mover advantages by influencing policymakers. Clear evidence shows that the incumbent duopoly has used its nonmarket strategies to accrue wealth and prevent new competitors from entering the Mexican television industry. Furthermore, a model of self-reinforcement of first-mover advantages exists and leads to the influence of the duopoly's nonmarket strategies on public welfare and other ethical issues. © 2013 Elsevier Inc.