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This paper analyses how competition between media firms influences the way they are financed. In a setting where … monopoly media firms choose to be completely financed by consumer payments, competition may lead the media firms to be financed … by advertising as well. The closer substitutes the media firms’ products are, the less they rely on consumer payment and …
Persistent link: https://www.econbiz.de/10005652317
We show how increased competition in a media market may have implications for the competition between firms that are … space in a media market and find that there is more entry in the product market, the more competitive the media market is …. The paper is the first combining a study of media markets with a behavioral foundation of how advertising a¤ects the …
Persistent link: https://www.econbiz.de/10011249395
Persistent link: https://www.econbiz.de/10005771245
We consider a model where TV channels transmit advertising, and viewers dislike such commercials. We find that the less differentiated the TV channels’ programs are, the lower is the amount of advertising in equilibrium. Relative to the social optimum, there is underprovision of advertising if...
Persistent link: https://www.econbiz.de/10005652181
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We extend the classical Hotelling location game with exogenously fixed prices to the case where consumers' transportation costs are asymmetric, in the sence that it is more costly for consumer to move in one direction, say on the left (towards 0), than to move to the right (towards1).
Persistent link: https://www.econbiz.de/10005652395
Under the current market structure in the TV industry advertising prices are typically set by TV channels while viewer prices are set by distributors (e.g., cable operators). The latter implies that the distributors partly internalize the competition between the TV channels, since they take into...
Persistent link: https://www.econbiz.de/10008800754
Persistent link: https://www.econbiz.de/10005771247
We present a theory of how advertising can break a lock-in by distorting beliefs about market shares in markets with network externalities. On the background of the availability heuristic we assume that people learn about market shares by observing product adoption of others, but are not able to...
Persistent link: https://www.econbiz.de/10005652088