Magazine Subscription and Intertemporal Discounting: Some Further Evidence

28 Pages Posted: 2 Dec 2014

See all articles by Marcelo Resende

Marcelo Resende

Universidade Federal do Rio de Janeiro (UFRJ); CESifo (Center for Economic Studies and Ifo Institute)

Eduardo Ferioli

Departament of Statistics, Federal Fluminense University

Date Written: November 28, 2014

Abstract

The paper’s objective is to assess price discrimination in magazine subscriptions in the Brazilian market. Oster and Scott-Morton (2005) had advanced a price discrimination mechanism in which the ratio between subscription and newsstand prices would be positively associated to the extent that a magazine provides long-term benefits. The present conservative application, in a market where subscription is much less widespread, does not provide support for that form of price discrimination after controlling for different characteristics of the magazines in the econometric analysis. Nevertheless, an exploratory analysis based on principal components suggests that a multidimensional price discrimination mechanism that is composed of price and advertising discounts may be occurring.

Keywords: magazine subscription, intertemporal discounting, price discrimination

JEL Classification: D90, L11, L82

Suggested Citation

Resende, Marcelo and Ferioli, Eduardo, Magazine Subscription and Intertemporal Discounting: Some Further Evidence (November 28, 2014). CESifo Working Paper Series No. 5070, Available at SSRN: https://ssrn.com/abstract=2532886

Marcelo Resende (Contact Author)

Universidade Federal do Rio de Janeiro (UFRJ) ( email )

Rua Sao Francisco Xavier, 524
Instituto de Economia
Rio de Janeiro RJ 21949
Brazil

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Eduardo Ferioli

Departament of Statistics, Federal Fluminense University ( email )

Rua Miguel de Frias, 9
Icaraí
Niteroi, WV Rio DeJaneiro 24220-900
Brazil
55 21 26292101 (Phone)

HOME PAGE: http://https://sites.google.com/site/ferioligomes/

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