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

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Author Info
Thompson, R Stephen
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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Publisher Info
Article provided by Blackwell Publishing 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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  1. 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. [Downloadable!] (restricted)
  2. Robert B. Ekelund, George S. Ford, John D. Jackson, 2000. "Are Local TV Markets Separate Markets?," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 7(1), pages 79-97, February. [Downloadable!] (restricted)
  3. 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. [Downloadable!]
  4. Lisa George & Joel Waldfogel, 2000. "Who Benefits Whom in Daily Newspaper Markets?," NBER Working Papers 7944, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. 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. [Downloadable!]
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  6. Susanne Kremhelmer & Hans Zenger, 2004. "Advertising and the Media," Industrial Organization 0403003, EconWPA. [Downloadable!]
  7. Kaiser, Ulrich & Wright, Julian, 2004. "Price Structure in Two-sided Markets : Evidence from the Magazine Industry?," ZEW Discussion Papers 04-80, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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