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Do Media Consumers Really Dislike Advertising? An Empirical Assessment of a Popular Assumption in Economic Theory

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Author Info
Ulrich Kaiser (University of Southern Denmark)

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Abstract

This paper uses data on the population of German magazines for the period 1973 to 2004 to show that, contrary to conventional wisdom, there is little evidence for magazine readers disliking advertising. Many magazines in fact have readers who appreciate advertising. The degree of appreciation increases in reader age and decreases with income as well as with education.

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File URL: http://www.econ.ku.dk/CIE/Discussion%20Papers/2007/2007-08.pdf
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Publisher Info
Paper provided by University of Copenhagen. Department of Economics. Centre for Industrial Economics in its series CIE Discussion Papers with number 2007-08.

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Length: 11 pages
Date of creation: May 2007
Date of revision:
Handle: RePEc:kud:kuieci:2007-08

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Related research
Keywords: two-sided markets; advertising; Mean Group Estimation; media markets; nuisance;

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Kaiser, Ulrich & Wright, Julian, 2006. "Price structure in two-sided markets: Evidence from the magazine industry," International Journal of Industrial Organization, Elsevier, vol. 24(1), pages 1-28, January. [Downloadable!] (restricted)
    Other versions:
  2. Susanne Kremhelmer & Hans Zenger, 2004. "Advertising and the Media," Industrial Organization 0403003, EconWPA. [Downloadable!]
  3. Reisinger, Markus, 2004. "Two-Sided Markets with Negative Externalities," Discussion Papers in Economics 478, University of Munich, Department of Economics. [Downloadable!]
  4. Peitz, Martin & Valletti, Tommaso, 2004. "Content and Advertising in the Media: Pay-TV versus Free-To-Air," CEPR Discussion Papers 4771, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  5. Pesaran, M. Hashem & Smith, Ron, 1995. "Estimating long-run relationships from dynamic heterogeneous panels," Journal of Econometrics, Elsevier, vol. 68(1), pages 79-113, July. [Downloadable!] (restricted)
    Other versions:
  6. Jean J. Gabszewicz & Didier Laussel & Nathalie Sonnac, 2004. "Programming and Advertising Competition in the Broadcasting Industry," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 13(4), pages 657-669, December. [Downloadable!] (restricted)
  7. Ulrich Kaiser, 2007. "When Pricing Below Marginal Cost Pays Off: Optimal Price Choice in a Media Market with Upfront Pricing," CIE Discussion Papers 2007-05, University of Copenhagen. Department of Economics. Centre for Industrial Economics. [Downloadable!]
  8. Kind, Hans Jarle & Nilssen, Tore & Sørgard, Lars, 2005. "Advertising on TV: Under- or Overprovision?," Memorandum 15/2005, Oslo University, Department of Economics. [Downloadable!]
  9. Timothy F. Bresnahan & Robert J. Gordon, 1996. "The Economics of New Goods," NBER Books, National Bureau of Economic Research, Inc, number bres96-1.
  10. Häckner, Jonas & Nyberg, Sten, 2000. "Price Competition, Advertising and Media Market Concentration," Research Papers in Economics 2000:3, Stockholm University, Department of Economics. [Downloadable!]
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This page was last updated on 2009-12-2.

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