Circulations, Revenues, and Profits in a Newspaper Market with Fixed Advertising Costs
AbstractThis article investigates a model in which 2 newspapers compete between them for readers with differentiated preferences and advertise new products at a cost per reader that decreases as the circulation increases. The model can account for the empirical regularity that the revenues from advertising and the profits of the newspapers increase more than proportionally with the circulation. A complementary finding is that a larger number of potential advertisers lowers the profits of both newspapers.
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.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Journal of Media Economics.
Volume (Year): 22 (2009)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.tandfonline.com/HMEC20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- João Correia-da-Silva & Joana Resende, 2013. "Free daily newspapers: too strong incentives to print?," Portuguese Economic Journal, Springer, vol. 12(2), pages 113-130, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.