, magazines, newspapers, the Internet, and television (the illustrative example henceforth). Most advertising expenditures are … incurred for these media. They are also mainly supported by advertising revenue. Early work stressed possible market failures … sides are coordinated by broadcasters (or “platforms”) that choose ad levels and program types, and advertising finances the …

This chapter focuses on the economic mechanisms at work in recent models of advertising finance in media markets …, and to clarify the conceptual aspects. The chapter first develops a canonical model of two-sided markets for advertising … advertising markets, and concrete issues such as congestion and second-degree discrimination. The second part is devoted to recent …

traditional merger analysis. Neither subsequent entry nor follow-on mergers necessarily mitigate the problem … determined. Our main results characterize mergers whose synergies reduce consumer welfare by inducing rivals to exit. The … conditions under which such mergers arise are broad, regardless of whether we consider quantity competition among homogeneous …

We use cumulative reaction functions to compare long-run market structures in aggregative oligopoly games. We first …

Standard media economics models imply that increased platform competition decreases ad levels and that mergers reduce … assumptions that there is no advertising congestion and that viewers single-home. Allowing for crowding in viewer attention spans …

, it later “tips” to monopoly, after which entry is hard, often even too hard given incompatibility. And while switching … costs can encourage small-scale entry, they discourage sellers from raiding one another's existing customers, and so also … discourage more aggressive entry. Because of these competitive effects, even inefficient incompatible competition is often more …