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This article first provides an alternative formulation of the Cancian, Bills and Bergstrom (1995) problem, which discards the non-existence difficulty and consequently allows one to consider some extensions of the TV newscast scheduling game. The extension considered consists in assuming that...
Persistent link: https://www.econbiz.de/10008674660
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
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We analyze competition between two private television channels that derive their profits from advertising receipts. These profits are shown to be proportional to total population advertising attendance. The channels play a sequential game in which they first select their profiles (program mixes)...
Persistent link: https://www.econbiz.de/10005261470
The press industry depends in a crucial way on the possibility of financing an important fraction of its activities by advertising receipts. We show that this may induce the editors of the newspapers to moderate the political message they display to their readers, compared with the political...
Persistent link: https://www.econbiz.de/10005215875
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