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We study a two-sided market where a platform attracts firms selling differentiated products and buyers interested in those products. In the unique subgame perfect equilibrium of the game, the platform fully internalizes the network externalities present in the market and firms and consumers all...
Persistent link: https://www.econbiz.de/10005181272
economic theory prescribes that the advertising volume can be optimally reduced by levying a tax on ads. However, making use of …
Persistent link: https://www.econbiz.de/10005051527
the advertising market is relatively small, the newspapers might invest too little in journalism and be too differentiated …
Persistent link: https://www.econbiz.de/10009323300
This paper shows that consumers may buy more of a taxed good if it is sold by a two-sided platform firm. Two-sided platform industries serve distinct customer groups that are connected through interdependent demand, and include major businesses such as the media industry (newspapers/magazines...
Persistent link: https://www.econbiz.de/10005406228
advertisers and customers. The relation between advertising receipts and sales receipts, which are both complementary and … antagonist, is different if media operators impose a price or a quantity to advertisers. When consumers dislike advertising …, media operators are better off setting an advertising price than an advertising quantity. We establish a relationship …
Persistent link: https://www.econbiz.de/10005405759
This paper analyzes the effects of net neutrality regulation on investment incentives for Internet service providers …
Persistent link: https://www.econbiz.de/10005196250
As a part of their industry or competition policies governments decide whether to allow for free market entry of firms or to regulate market access. We analyze a model where governments (ab)use these policy decisions for strategic reasons in an international setting. Multiple equilibria of this...
Persistent link: https://www.econbiz.de/10005196323
ad-averse consumers and advertising space to firms. As all consumers prefer high over low quality content, competition … advertising motive. We analyze the impact of both the strength of mutual externalities and advertisement regulation policies on … advertising ban in the high quality medium reduces its viewer market share and thereby the equilibrium reception of high quality …
Persistent link: https://www.econbiz.de/10009221558
We investigate the effect of competition on quality in regulated markets (e.g., health care, higher education, public utilities), using a Hotelling framework, in the presence of sluggish demand. We take a differential-game approach, and derive the open-loop solution (providers choose the optimal...
Persistent link: https://www.econbiz.de/10008572490
We study the relationship between regulatory regimes and pharmaceutical firms’ pricing strategies using a unique policy experiment from Norway, which in 2003 introduced a reference price (RP) system called “index pricing” for a sub-sample of off-patent pharmaceuticals, replacing the...
Persistent link: https://www.econbiz.de/10005406112