A Note on Pricing and Efficiency in Print Media Industries
12 Pages Posted: 20 Nov 2002
Date Written: May 15, 2002
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.
Keywords: print media, advertising, product pricing
JEL Classification: D4, L4
Suggested Citation: Suggested Citation