Social Impacts of New Radio Markets in Ghana: A Dynamic Structural Analysis Christoph Walsh? December 1, 2020 Abstract In the 1990s, Ghana opened up the radio broadcasting market to commer- cial stations. Exploiting quasirandom variation in radio coverage caused by coverage spilling through gaps in mountainous areas, I estimate the effect of radio coverage on social outcomes, such as malaria among children, and find positive benefits. I then estimate a dynamic structural model of radio station entry in order to simulate counterfactual regulatory policies. Compared to entry cost subsidies, I find allowing higher transmitter strengths to be particu- larly effective at delivering the social benefits of radio to new communities. Key words: Dynamic oligopoly, Radio regulation, Effects of media JEL codes: D43, L13, L82 ? Tilburg University, Department of Econometrics and Opertations Research. Correspondence email:
[email protected]. This is a revised version of a chapter of my PhD dissertation. I am in- debted to my PhD advisor Marc Rysman for his invaluable guidance and encouragement throughout this project. I would also like to thank Francesco Decarolis, Jihye Jeon, Andrew Newman, other faculty at Boston University for their valuable comments and suggestions. Tiantian Yu provided excellent research assistance. 1 Exposure to mass media has been found to have effects on a wide range of social and economic outcomes, such as voter turnout, fertility, and education. Access to mass media is also important to inform individuals about certain issues, such as elections or the spread of infectious diseases. In rural parts of many developing countries, radio is the most popular form of mass media, as lower literacy rates and electricity penetration rule out newspapers, television, and internet for many individuals.