Pricing and efficiency of a circulation industry: The case of newspapers

“…This is known as demand interdependence. Evidence showed that this effect appears when competition from other media exists (Chaudhri 1998, Van Kranenburg 2001. Therefore, it is important to identify the relevant market.…”

Section: Empirical Findingsmentioning

confidence: 99%

Relevant Market and Pricing Behavior of Regional Newspapers in the Netherlands

Kranenburg¹

2005

VJH

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The aim of this study is to investigate the effect of market structure and area characteristics on the subscription prices and advertising rates for regional newspapers in the Netherlands. The price-market structure analysis in this study shows that there exists a negative relationship between concentration and prices. The results also show that advertising rates, differently to subscription prices, are significantly influenced by regional income and particularly by population density in the specific area. Furthermore, the evidence indicates that the relevant market for regional newspapers in the Netherlands is a market which encompasses regional newspapers, national newspapers and other media sources. Terms of use: Documents in EconStor may

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“…3 Habit effects are, at first, neglected thus a simple static model can be used to analyse optimal prices and 3 See Stigler (1964), Thompson (1984) or Chaudhri (1998) for concentration of regional newspaper markets in the United States, Australia or the Republic of Ireland. Regarding Germany (see Dewenter and Kraft 2001), most of the cities have monopolistic or duopolistic newspapers markets.…”

Section: A Static Approach Neglecting Habit Effectsmentioning

confidence: 99%

“…Especially the dependency of the sub-markets served by a print media firm, like a newspaper or magazine publisher, has been the topic of a number of studies, both theoretical and empirical, since a considerable time (see Corden 1952, Bucklin et al 1989, Dertrouzos and Trautman 1990, Blair and Romano 1993or Chaudhri 1998. The main results of these studies focus on the pricing behaviour of the publisher with respect to the interrelationship of reader and advertising markets.…”

Section: Introductionmentioning

confidence: 99%

Media Markets with Habit Formation

Dewenter

2003

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractThe aim of this paper is to analyse the pricing behaviour of print media firms when consumption on reader markets is addictive or habituated. However, not only the reader but also the advertising market has to be considered by a publisher optimising profits. Because print media markets are highly concentrated a monopoly-monopoly model is built, where both markets are of monopolistic structure. Moreover, a monopoly-duopoly model is considered, where only the reader market is monopolistic but the advertising market is of duopolistic structure. To compare the results from the models regarding habit effects, simple static models are presented as a benchmark.

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Pricing and efficiency of a circulation industry: The case of newspapers

Cited by 47 publications

References 1 publication

Wettbewerb als Aufgabe und Problem auf Medienmärkten: Fallstudien aus Sicht der „Theorie zweiseitiger Märkte“

Wettbewerb als Aufgabe und Problem auf Medienmärkten: Fallstudien aus Sicht der „Theorie zweiseitiger Märkte“

Relevant Market and Pricing Behavior of Regional Newspapers in the Netherlands

Media Markets with Habit Formation

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