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Circulation versus Advertiser Appeal in the Newspaper Industry: An Empirical Investigation

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  • Thompson, R Stephen
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    Abstract

    Advertising space is not a homogeneous commodity, but something whose value depends on the characteristics of a newspaper's readership. It is suggested, in particular, that the proportion of readers belonging to the more affluent social categories will exert a strong positive influence on advertising. This paper investigates the circulation/readership-profile relation using a simple simultaneous equation framework. The model is then estimated across a sample of British and Irish daily and Sunday newspapers, using data collected from industry sources. The paper then seeks to quantify the trade-off between circulation and the proportion of high income readers. Copyright 1989 by Blackwell Publishing Ltd.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Industrial Economics.

    Volume (Year): 37 (1989)
    Issue (Month): 3 (March)
    Pages: 259-71

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    Handle: RePEc:bla:jindec:v:37:y:1989:i:3:p:259-71

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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821

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    Cited by:
    1. Kaiser, Ulrich & Wright, Julian, 2006. "Price structure in two-sided markets: Evidence from the magazine industry," International Journal of Industrial Organization, Elsevier, vol. 24(1), pages 1-28, January.
    2. Edward S. Knotek II, 2005. "Convenient prices, currency, and nominal rigidity : theory with evidence from newspaper prices," Research Working Paper RWP 05-11, Federal Reserve Bank of Kansas City.
    3. Asplund, Marcus & Eriksson, Rickard & Strand, Niklas, 2001. "Prices, Margins and Liquidity Constraints: Swedish Newspapers 1990-1996," Working Paper Series in Economics and Finance 470, Stockholm School of Economics.
    4. Robert Ekelund & George Ford & John Jackson, 2000. "Are Local TV Markets Separate Markets?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 7(1), pages 79-97.
    5. Kaiser, Ulrich, 2002. "Optimal Cover Prices and the Effects of Website Provision on Advertising and Magazine Demand," ZEW Discussion Papers 02-54, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    6. Kremhelmer, Susanne, 2004. "Fairness, Property Rights, and the Market for Media," Munich Dissertations in Economics 2521, University of Munich, Department of Economics.
    7. Robert Ekelund & George Ford & John Jackson, 1999. "Is Radio Advertising a Distinct Local Market? An Empirical Analysis," Review of Industrial Organization, Springer, vol. 14(3), pages 239-256, May.
    8. Lisa George & Joel Waldfogel, 2000. "Who Benefits Whom in Daily Newspaper Markets?," NBER Working Papers 7944, National Bureau of Economic Research, Inc.
    9. Susanne Kremhelmer & Hans Zenger, 2004. "Advertising and the Media," Industrial Organization 0403003, EconWPA.
    10. Kremhelmer, Susanne & Zenger, Hans, 2008. "Advertising and the screening role of mass media," Information Economics and Policy, Elsevier, vol. 20(2), pages 107-119, June.
    11. Depken II, Craig A., 2004. "Audience characteristics and the price of advertising in a circulation industry: evidence from US magazines," Information Economics and Policy, Elsevier, vol. 16(2), pages 179-196, June.

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