We present two linked, longitudinal case studies of the use of quasi-markets in United Kingdom broadcasting over the past decade: one looks at the regulated outsourcing of programme making to independent producers, the other at the development of an internal market system within the British Broadcasting Corporation (BBC). New network forms are shown to have arisen from the interaction of legal regulation, contracts, and property rights. However, these organisational forms are also seen to be associated with increased transaction costs and with signs of deterioration in programme quality and innovation. We suggest that for such networks to be a viable "third way" between markets and hierarchy, closer attention needs to be given to the issue of institutional design.
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