A Note on Pricing and Efficiency in Print Media Industries

Kaiser, Ulrich

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URL: http://ub-madoc.bib.uni-mannheim.de/411
URN: urn:nbn:de:bsz:180-madoc-4116
Document Type: Working paper
Year of publication: 2002
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: L4 D4 ,
Subject headings (SWD): Druckmedien , Anzeigenmarkt , Preisbildung
Abstract: Actors on print media markets face two different (and interrelated) demand curves: the demand for copies and the demand for advertising space. This paper develops a realistic, yet simple, model of print media industries. In contrast to earlier studies, it takes into account that print media firms can neither set advertising space nor its price. A main finding of this paper is that competitive concerns regarding recent concentrations in print media industries are likely to be overstated since a print media firms’ cover pricing is limited by its feedback on advertising demand.
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