Ad-financed TV channels are two-sided platforms where media houses provide communication from advertisers to viewers. Most media houses air several channels, some of which are particularly valuable to advertisers. At first glance, one might expect the ad volumes to be highest for the channels...

A benchmark result in public economics is that it is possible to increase both tax revenue and welfare by making a monopoly subject to ad valorem taxes rather than unit taxes. We show that such revenue and welfare dominance does not hold in two-sided markets.

Newspapers are two-sided platforms that sell their product both to readers and advertisers. Media firms in general, and newspapers in particular, are considered important providers of information, culture and language in most countries. Newspapers are therefore given preferential tax treatment....