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Advertising and Newspaper Differentiation: On the Role of Readers’ Advertising Taste

Author

Listed:
  • Kind, Hans Jarle

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

  • Koethenbuerger, Marko

    (Center for Economic Studies, Ludwig-Maximilians-Universität)

  • Schjelderup, Guttorm

    (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)

Abstract

Newspapers have an incentive to moderate their profile in order to gain a larger readership and thus higher advertising revenue. We show that this incentive is weakened both if readers are ad-haters and if they are ad-lovers.

Suggested Citation

  • Kind, Hans Jarle & Koethenbuerger, Marko & Schjelderup, Guttorm, 2007. "Advertising and Newspaper Differentiation: On the Role of Readers’ Advertising Taste," Discussion Papers 2007/4, Norwegian School of Economics, Department of Business and Management Science.
    • Handle: RePEc:hhs:nhhfms:2007_004
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    File URL: http://hdl.handle.net/11250/163870
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    References listed on IDEAS

    as
    1. Gabszewicz, Jean J. & Laussel, Dider & Sonnac, Nathalie, 2001. "Press advertising and the ascent of the 'Pensee Unique'," European Economic Review, Elsevier, vol. 45(4-6), pages 641-651, May.
    2. Mark Armstrong, 2006. "Competition in two‐sided markets," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 668-691, September.
    3. Jean J. Gabszewicz & Didier Laussel & Nathalie Sonnac, 2002. "Press Advertising and the Political Differentiation of Newspapers," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(3), pages 317-334, July.
    4. Nathalie Sonnac, 2000. "Readers’ Attitudes Toward Press Advertising : Are They Ad-Lovers or Ad-Averse ?," Working Papers 2000-28, Center for Research in Economics and Statistics.
    5. Mark Armstrong Author-Email: mark.armstrong@ucl.ac.uk Author-Workplace-Name: University College of London, 2006. "Competition in Two-Sided Markets," RAND Journal of Economics, The RAND Corporation, vol. 37(3), pages 668-691, Autumn.
    6. Gabszewicz, Jean J & Laussel, Didier & Sonnac, Nathalie, 2002. "Press Advertising and the Political Differentiation of Newspapers," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(3), pages 317-334.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

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    2. Konstantinos Serfes & Eleftherios Zacharias, 2009. "Location Decisions of Competing Platforms," Working Papers 09-18, NET Institute, revised Aug 2009.

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    More about this item

    Keywords

    Media; Two-sided Markets; Product Differentiation; Hotelling;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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