advertising in that medium. We apply a simple model of a product market with network externalities where firms buy advertising …. The paper is the first combining a study of media markets with a behavioral foundation of how advertising a¤ects the …

Under the current market structure in the TV industry advertising prices are typically set by TV channels while viewer … the willingness to pay for rival channels. We …find that a shift to a market structure where advertising prices as well as …

We present a theory of how advertising can break a lock-in by distorting beliefs about market shares in markets with … shows that if the entrant’s product is of su¢ ciently high quality, then the entrant will use advertising in order to break …

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 TV channels are sufficiently close substitutes. In such a situation, a merger …

advertising may affect consumer perferences. We illustrate the implications of our theory - an contrast with results from models … of informative advertising - by analysing the relationship between the degree of product differentiation and equilibrium … levels of advertising. The analysis suggests that an positive relationship between equilibrium levels of advertising and …

by advertising as well. The closer substitutes the media firms’ products are, the less they rely on consumer payment and … the more they rely on advertising revenues. If media firms can invest in programming, they invest more the less …