I derive and estimate a model for profit maximization of German magazines. Quarterly data on German women's magazines observed between 1998 and 2001 are used in the econometrics. Main empirical results are that magazines with particularly circulation-sensitive advertising prices set cover prices below marginal cost and there are large and highly significant returns to scale and scope in production.
ZUSAMMENFASSUNG - (Ein geschaetztes Modell für den deutschen Zeitschriftenmarkt) Diese Arbeit entwickelt und schätzt ein Modell für die Gewinnmaximierung deutscher Zeitschriften. In der ökonometrischen Analyse werden vierteljährliche Daten des Zeitraums 1998 bis 2001 verwendet. Es zeigt sich, dass die Preise von Zeitschriften, deren Anzeigenpreis besonders stark auf Veränderungen in der verkauften Auflage reagieren, deutlich unter den Produktionskosten liegen. Zudem finden sich grosse und hochsignifikante Skalenerträge.
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Publisher Info
Paper provided by Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG) in its series CIG Working Papers with number
SP II 2004-07.
Find related papers by JEL classification: L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
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