Advertising and the rise of the free daily newspapers
AbstractWe analyze the competition between two newspapers in a vertical differentiation model where the qualities of the journals are determined endogenously in the first stage of the game. We show that when the advertising revenues per reader increase there is a critical value above which the quality of the low quality newspaper discontinuously falls while it becomes similtaneously a free newspaper. This is beneficial to the high quality journal and detrimental to the readers.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2006087.
Date of creation: 00 Oct 2006
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advertising; newspapers quality;
Other versions of this item:
- Jean J. , GABSZEWICZ & Didier, LAUSSEL & Nathalie, SONNAC, 2006. "Advertising and the rise of the free daily newspapers," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2006045, Université catholique de Louvain, Département des Sciences Economiques.
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
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