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The Market for Fake Observations

Author

Listed:
  • Brekke, Kjellr Arne

    (Dept. of Economics, University of Oslo)

  • Nilsen , Tore

    (Dept. of Economics, University of Oslo)

Abstract

We show how increased competition in a media market may have implications for the competition between firms that are advertising in that medium. We apply a simple model of a product market with network externalities where firms buy advertising space in a media market and find that there is more entry in the product market, the more competitive the media market is. The paper is the first combining a study of media markets with a behavioral foundation of how advertising a¤ects the demand for the advertised products.

Suggested Citation

  • Brekke, Kjellr Arne & Nilsen , Tore, 2011. "The Market for Fake Observations," Memorandum 25/2011, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2011_025
    as

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    File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2011/Memo-25-2011.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Advertising; Media Market; Availability Heuristic; Network Externalities;
    All these keywords.

    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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