Understanding the Internet's Relevance to Media Ownership Policy: A Model of Too Many Choices
AbstractDoes the Internet provide a failsafe against media consolidation in the wake of an easing of media ownership rules? This paper posits a model of news outlet selection on the Internet in which consumers experience cognitive costs that increase with the number of options faced. Consistent with psychological evidence, these costs may be reduced by constraining one's choice set to "safe bets" familiar from offline (e.g., CNN.com). It is shown that, as the number of outlets grows, dispersion of patronage across outlets inevitably declines. Consequently, independent Internet outlets may fail to mitigate lost outlet independence on other media.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.
Volume (Year): 7 (2007)
Issue (Month): 1 (June)
Contact details of provider:
Web page: http://www.degruyter.com
Other versions of this item:
- Nagler, Matthew, 2006. "Understanding the Internet's relevance to media ownership policy: a model of too many choices," MPRA Paper 2180, University Library of Munich, Germany.
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anderson, S. & Neven, D.J., 1986.
"Market efficiency with combinable products,"
CORE Discussion Papers
1986045, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Simon P. Anderson & Stephen Coate, 2003.
"Market Provision of Broadcasting: A Welfare Analysis,"
Virginia Economics Online Papers
358, University of Virginia, Department of Economics.
- Simon P. Anderson & Stephen Coate, 2005. "Market Provision of Broadcasting: A Welfare Analysis," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 947-972.
- Esther Gal-Or & Anthony Dukes, 2003. "Minimum Differentiation in Commercial Media Markets," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(3), pages 291-325, 09.
- Dos Santos Ferreira, Rodolphe & Thisse, Jacques-Francois, 1996.
"Horizontal and vertical differentiation: The Launhardt model,"
International Journal of Industrial Organization,
Elsevier, vol. 14(4), pages 485-506, June.
- Dos Santos Ferreira, R. & Thisse, J.-F., . "Horizontal and vertical differentiation: The Launhardt model," CORE Discussion Papers RP -1216, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Hauser, John R & Wernerfelt, Birger, 1990. " An Evaluation Cost Model of Consideration Sets," Journal of Consumer Research, University of Chicago Press, vol. 16(4), pages 393-408, March.
- Gabszewicz, Jean J & Laussel, Didier & Sonnac, Nathalie, 2002.
" Press Advertising and the Political Differentiation of Newspapers,"
Journal of Public Economic Theory,
Association for Public Economic Theory, vol. 4(3), pages 317-34.
- GABSZEWICZ, Jean J. & LAUSSEL, Didier & SONNAC, Nathalie, . "Press advertising and the political differentiation of newspapers," CORE Discussion Papers RP -1561, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Rochet, Jean-Charles & Tirole, Jean, 2003.
"Platform Competition in Two-Sided Markets,"
IDEI Working Papers
152, Institut d'Économie Industrielle (IDEI), Toulouse.
- Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
- Ulrich Kaiser & Hans Christian Kongsted, 2005.
"Do Magazines' "Companion Websites" Cannibalize the Demand for the Print Version?,"
CAM Working Papers
2005-07, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
- Kaiser, Ulrich & Kongsted, Hans Christian, 2005. "Do Magazines' "Companion Websites" Cannibalize the Demand for the Print Version?," ZEW Discussion Papers 05-49, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Ulrich Kaiser & Hans Christian Kongsted, 2007. "Do Magazines' ”Companion Websites” Cannibalize the Demand for the Print Version?," CIE Discussion Papers 2007-03, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
- Steven T. Berry & Joel Waldfogel, 2001. "Do Mergers Increase Product Variety? Evidence From Radio Broadcasting," The Quarterly Journal of Economics, MIT Press, vol. 116(3), pages 1009-1025, August.
- GABSZEWICZ, Jean J. & LAUSSEL, Didier & SONNAC, Nathalie, .
"Programming and advertising competition in the broadcasting industry,"
CORE Discussion Papers RP
-1873, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jean J. Gabszewicz & Didier Laussel & Nathalie Sonnac, 2004. "Programming and Advertising Competition in the Broadcasting Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(4), pages 657-669, December.
- Nagler, Matthew G., 1993. "Rather bait than switch : Deceptive advertising with bounded consumer rationality," Journal of Public Economics, Elsevier, vol. 51(3), pages 359-378, July.
- Kaiser Ulrich, 2006. "Magazines and their Companion Websites: Competing Outlet Channels?," Review of Marketing Science, De Gruyter, vol. 4(1), pages 1-26, August.
- Shugan, Steven M, 1980. " The Cost of Thinking," Journal of Consumer Research, University of Chicago Press, vol. 7(2), pages 99-111, Se.
- Mark Armstrong, 2006.
"Competition in two‐sided markets,"
RAND Journal of Economics,
RAND Corporation, vol. 37(3), pages 668-691, 09.
- Grace, H Stephen, Jr, 1970. "Professor Samuelson on Free Enterprise and Economic Inefficiency: A Comment," The Quarterly Journal of Economics, MIT Press, vol. 84(2), pages 337-40, May.
- Hoernig, Steffen H. & Valletti, Tommaso M., 2007.
"Mixing goods with two-part tariffs,"
European Economic Review,
Elsevier, vol. 51(7), pages 1733-1750, October.
- Dhar, Ravi, 1997. " Consumer Preference for a No-Choice Option," Journal of Consumer Research, University of Chicago Press, vol. 24(2), pages 215-31, September.
- Richard Schmalensee, 1978. "Entry Deterrence in the Ready-to-Eat Breakfast Cereal Industry," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 305-327, Autumn.
- Alexander Chernev, 2005. "Feature Complementarity and Assortment in Choice," Journal of Consumer Research, University of Chicago Press, vol. 31(4), pages 748-759, 03.
- Jimmy Chan & Daniel Stone, 2013. "Media proliferation and partisan selective exposure," Public Choice, Springer, vol. 156(3), pages 467-490, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.