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Advertising and competitive access pricing to internet services or pay-TV

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  • GABSZEWICZ, Jean J.
  • LAUSSEL, Didier
  • SONNAC, Nathalie

Abstract

We study access pricing by platforms providing internet services ot pay-TV to users while they allow advertisers to have access to these users against payment via ads or banners. Users are assumed to be ad-haters. It is shown that equilibrium access prices in the users'market are increasing in the dimension of the advertising market: the larger the number of advertisers, the higher the access prices for both platforms.

Suggested Citation

  • GABSZEWICZ, Jean J. & LAUSSEL, Didier & SONNAC, Nathalie, 2006. "Advertising and competitive access pricing to internet services or pay-TV," LIDAM Discussion Papers CORE 2006086, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2006086
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