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Intermarket network externalities take place when the utility of a good produced in a givenindustry varies with the size of the demand for a good produced in another. A particularlysignificant example of this phenomenon is provided by the interaction between the media andadvertising industries....
Persistent link: https://www.econbiz.de/10005350703
We study whether advertising subsidizes consumers newspapers, prices. Using a model representingthe two-sided network effects between the advertising and printed media industries, we show that theanswer should be nuanced according to the readership,s attitude toward advertising.
Persistent link: https://www.econbiz.de/10005350712
Generally, economists interested in network effects analyse these effects when the consumption externalitycreated by the demand for the good is produced inside the industry itself. But it can be conceived that network effects takeplace from one industry to another. This happens when the utility...
Persistent link: https://www.econbiz.de/10005571937
In this paper we model a situation competition between two editorswho are rivals in both the newspapers’ and advertising industries. To identifythe consequences of this competition, we analyse a two-period sequentialgame whose players are the editors each selling a differentiated...
Persistent link: https://www.econbiz.de/10005571969