Television mergers and diversity in small markets

"Diversity of the airwaves"-making sure that viewers have a varied mix of ideas and information available in the relevant media market-remains one of the central goals of broadcasting policy for the ownership of television stations. In an effort to protect diversity of the airwaves, the Federal Communications Commission (FCC) prevents one entity from owning more than one television station in small television markets. This paper shows that the FCC's policy is probably counterproductive; allowing television mergers in small markets is very likely to increase diversity of the airwaves. Hence, when regulating television mergers in small markets, the FCC should have a presumption in favor of the merger.