Gabszewicz, Jean J.; Laussel, Didier; Sonnac, Nathalie - 2011
This paper develops a model of the daily newspaper industry in order to provide a tentative explanation for the rise of … free newspapers. This explanation is based on the growth of net advertising revenues per reader, i.e. of the difference … between advertising revenue per reader and unit printing cost. Our analysis explains why the new entrant chooses to enter as a …