socialincidence of competition and on the output and welfare effects of third-degree pricediscrimination in monopoly and oligopoly …

setup differentiated platforms compete in advertising and offer consumers a service free of charge (such as a TV program …) that is financed through advertising. We show that advertising can exhibit the properties of a strategic substitute or … complement. Surprisingly, there exist cases in which platforms benefit from market entry. Moreover, we show that from a welfare …

setup differentiated platforms compete in advertising and offer consumers a service free of charge (such as a TV program …) that is financed through advertising. We show that advertising can exhibit the properties of a strategic substitute or … complement. Surprisingly, there exist cases in which platforms benefit from market entry. Moreover, we show that from a welfare …

viewer fees. We show that the equilibrium advertising level is inefficiently high. We also demonstrate that entry of a … competition "either or both." A central result is that platform ownership does not affect advertising levels, despite nontrivial … platform leads to an increase in the advertising level if viewers' preferences for the platforms are negatively correlated …

, magazines, newspapers, the Internet, and television (the illustrative example henceforth). Most advertising expenditures are … incurred for these media. They are also mainly supported by advertising revenue. Early work stressed possible market failures … sides are coordinated by broadcasters (or “platforms”) that choose ad levels and program types, and advertising finances the …

This chapter focuses on the economic mechanisms at work in recent models of advertising finance in media markets …, and to clarify the conceptual aspects. The chapter first develops a canonical model of two-sided markets for advertising … advertising markets, and concrete issues such as congestion and second-degree discrimination. The second part is devoted to recent …