Quality Provision in Interrelated Markets
AbstractThis paper analyses the quality provision of interrelated market firms under different market structures both theoretically and empirically. A theoretical model is built, where a media firm offers newspapers in a primary market and advertising space in the secondary market. Furthermore, the media firm is assumed to choose a continuous quality level for advertisements. To test the hypotheses from the theoretical model empirically, we use data on German regional newspapers. The theoretical outcomes as well as the empirical results support the hypothesis that a monopolist provides a higher quality than a duopolist.
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Bibliographic InfoPaper provided by Helmut Schmidt University, Hamburg in its series Working Paper with number 7/2003.
Length: 50 pages
Date of creation: Jun 2003
Date of revision:
Quality Provision; Interrelated Markets; Pricing; Market Structure;
Find related papers by JEL classification:
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
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