Another Tale of Two-Sided markets
AbstractThis note generalizes the frequently used Hotelling model for two-sided markets. We demonstrate an invariance theorem: advertisement levels neither depend on the media price nor on the location of the media firm. An increase in advertising revenues does not change location but only the media price. In conclusion, a Hotelling model of two-sided markets is equivalent to one of one-sided markets.
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Bibliographic InfoPaper provided by University of Otago, Department of Economics in its series Working Papers with number 0708.
Length: 10 pages
Date of creation: Jun 2007
Date of revision: Jun 2007
Hotelling; general density function; media; location;
Find related papers by JEL classification:
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
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IDEI Working Papers
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- repec:fth:inseep:2000-28 is not listed on IDEAS
- Crampes, Claude & Haritchabalet, Carole & Jullien, Bruno, 2006.
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IDEI Working Papers
374, Institut d'Économie Industrielle (IDEI), Toulouse.
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CEPR Discussion Papers
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- Peitz, Martin & Valletti, Tommaso M., 2008. "Content and advertising in the media: Pay-tv versus free-to-air," International Journal of Industrial Organization, Elsevier, vol. 26(4), pages 949-965, July.
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