Internet Use, Competition, and Geographical Rescoping in Yellow Pages Advertising

36 Pages Posted: 26 Dec 2017 Last revised: 9 Feb 2019

See all articles by Lesley Chiou

Lesley Chiou

Occidental College - Department of Economics

E. Nilay Kafali

RTI International

Marc Rysman

Boston University - Department of Economics

Date Written: January 10, 2019

Abstract

This paper examines the effect of Internet penetration on competition and prices in the market for Yellow Pages advertising. We find that the diffusion of the Internet is associated with a decrease in the number of competitors and average prices for printed advertisements in the long-run. However, the decrease in prices is moderated by increasing market concentration as firms exit and by geographic rescoping as remaining competitors repositioned their products.

Keywords: Internet, competition, product positioning, price dispersion, geographical targeting

JEL Classification: L81, L11

Suggested Citation

Chiou, Lesley and Kafali, E. Nilay and Rysman, Marc, Internet Use, Competition, and Geographical Rescoping in Yellow Pages Advertising (January 10, 2019). Available at SSRN: https://ssrn.com/abstract=3090635 or http://dx.doi.org/10.2139/ssrn.3090635

Lesley Chiou (Contact Author)

Occidental College - Department of Economics ( email )

1600 Campus Road
Los Angeles, CA 90041
United States

HOME PAGE: http://www.faculty.oxy.edu/lchiou

E. Nilay Kafali

RTI International ( email )

PO Box 12194
Research Triangle Park, 27709
United States

Marc Rysman

Boston University - Department of Economics ( email )

270 Bay State Road
Boston, MA 02215
United States
617-353-3086 (Phone)
617-353-4449 (Fax)

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