Prices, Margins and Liquidity Constraints: Swedish Newspapers 1990-1996
AbstractFor Swedish newspaper firms, a market with high switching costs, the subscription market, and a market with low switching costs, the advertising market, are of approximately equal importance. When Sweden enters a deep recession, we find that liquidity constraints influence the pricing decision in the former, but not the latter market. This gives support to theories stressing the magnifying effect of liquidity constraints on the business cycle.
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Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 470.
Length: 22 pages
Date of creation: 29 Oct 2001
Date of revision:
Publication status: Forthcoming in Economica.
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Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
Phone: +46-(0)8-736 90 00
Fax: +46-(0)8-31 01 57
Web page: http://www.hhs.se/
More information through EDIRC
Liquidity constraints; switching costs; price adjustment; newspaper industry;
Find related papers by JEL classification:
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
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