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We consider a model of a TV oligopoly where TV channels transmit advertising and viewersdislike such commercials. We show that advertisers make a lower profit the larger the numberof TV channels. If TV channels are sufficiently close substitutes, there will be underprovisionof advertising...
Persistent link: https://www.econbiz.de/10005861187
We compare the advertising intensity and content of programming in a market withcompeting media platforms. With pay-tv, media platforms have two sources of revenues,advertising revenues and revenues from viewers. With free-to-air, media platformsreceive all revenues from advertising. We show...
Persistent link: https://www.econbiz.de/10005861251
This paper presents a model of media competition with free entry when media operators are financed both from 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...
Persistent link: https://www.econbiz.de/10010261367
We show how increased competition in a media market may have implications for the competition between firms that are advertising in that medium. We apply a simple model of a product market with network externalities where firms buy advertising space in a media market and find that there is more...
Persistent link: https://www.econbiz.de/10010330239
This paper analyses how competition between media firms influences the way they are financed. In a setting where monopoly media firms choose to be completely financed by consumer payments, competition may lead the media firms to be financed by advertising as well. The closer substitutes the...
Persistent link: https://www.econbiz.de/10010284274
This paper studies whether exposure to mass media and liking advertising are associated with an increased impulse buy tendency, and whether the availability of a credit card acts as a facilitating stimulus. It is found that impulse buys are positively associated with exposure to commercial...
Persistent link: https://www.econbiz.de/10010285191
The Internet provides media firms with an unparalleled opportunity to target advertising towards their consumers. This paper considers how targeted advertising affects different media markets. I show that media firm profits rise and advertising prices rise the most with the ability to target...
Persistent link: https://www.econbiz.de/10014040519
Newspapers have been experiencing declining circulation figures and advertising revenues for several years. Declining advertising figures, in particular, pose a threat to newspapers – this is especially severe in the U.S. where 73% of newspapers' revenues are generated through advertising....
Persistent link: https://www.econbiz.de/10014042343
This paper explores panel data on advertising and product pricing for firms in the compact disc player market over the period 1983-92. The data reveal that, for the typical CD player, advertising and price move together, with both rising initially and remaining above introductory levels for...
Persistent link: https://www.econbiz.de/10014047262
Digital video recorder proliferation and new commercial audience metrics are making television networks' revenues more sensitive to audience losses from advertising. There is currently limited understanding of how traditional advertising and product placement affect television audiences. We...
Persistent link: https://www.econbiz.de/10014047419