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Newspapers market shares and the theory of the circulation spiral

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  • J. J. Gabszewicz

    (CORE, Universit�e Catholique de Louvain)

  • Paolo Garella

    ()
    (University of Milano, Italy)

  • N. Sonnac

    (CREST-LEI and Universit�e Paris II)

Abstract

We consider a model of daily newspapers’ competition to test the validity of the so called ”theory of the circulation spiral”. According to it, the interaction between the newspapers and the advertising markets drives the newspaper with the smaller readership into a vicious circle, finally leading it to death. In a model with two newspapers, we show that, contrary to this conjecture, the dynamics envisaged by the proposers of the theory, does not always lead to the elimination of one of them.

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Bibliographic Info

Paper provided by University of Crete, Department of Economics in its series Working Papers with number 0514.

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Length: 9 pages
Date of creation: 05 Nov 2005
Date of revision:
Handle: RePEc:crt:wpaper:0514

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  1. GABSZEWICZ, Jean & LAUSSEL, Didier & SONNAC, Nathalie, 2002. "Attitudes toward advertising and price competition in the press industry," CORE Discussion Papers 2002026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Dertouzos, James N & Trautman, William B, 1990. "Economic Effects of Media Concentration: Estimates from a Model of the Newspaper Firm," Journal of Industrial Economics, Wiley Blackwell, vol. 39(1), pages 1-14, September.
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Cited by:
  1. Marco Antonielli & Lapo Filistrucchi, 2011. "Collusion and the political differentiation of newspapers," Working Papers 11-26, NET Institute, revised Nov 2011.
  2. Lapo Filistrucchi & Damien Geradin & Eric van Damme, 2012. "Identifying Two-Sided Markets," Working Papers - Economics wp2012_01.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.

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