Another Tale of Two-Sided markets

This note generalizes the frequently used Hotelling model for two-sided markets. We demonstrate an invariance theorem: advertisement levels neither depend on the media price nor on the location of the media firm. An increase in advertising revenues does not change location but only the media price. In conclusion, a Hotelling model of two-sided markets is equivalent to one of one-sided markets.

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Year of publication:	2007-06
Authors:	Kind, Hans Jarle ; Staehler, Frank
Institutions:	Department of Economics, School of Business
Subject:	Hotelling \| general density function \| media \| location

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 0708 10 pages
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; L82 - Entertainment; Media (Performing Arts, Visual Arts, Broadcasting, Publishing, etc.)
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010611264