American Economic Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Either or Both Competition: A "Two-Sided" Theory of Advertising with Overlapping Viewerships
American Economic Journal: Microeconomics
vol. 8,
no. 3, August 2016
(pp. 189–222)
Abstract
In media markets, consumers spread their attention to several outlets, increasingly so as consumption migrates online. The traditional framework for competition among media outlets rules out this behavior by assumption. We propose a new model that allows consumers to choose multiple outlets and use it to study the effects on advertising levels and the impact of entry and mergers. We identify novel forces which reflect outlets' incentives to control the composition of their customer base. We link consumer preferences and advertising technologies to market outcomes. The model can explain several empirical regularities that are difficult to reconcile with existing models.Citation
Ambrus, Attila, Emilio Calvano, and Markus Reisinger. 2016. "Either or Both Competition: A "Two-Sided" Theory of Advertising with Overlapping Viewerships." American Economic Journal: Microeconomics, 8 (3): 189–222. DOI: 10.1257/mic.20150019Additional Materials
JEL Classification
- D42 Market Structure, Pricing, and Design: Monopoly
- D43 Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
- L12 Monopoly; Monopolization Strategies
- L13 Oligopoly and Other Imperfect Markets
- L82 Entertainment; Media
- L86 Information and Internet Services; Computer Software
- M37 Advertising
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