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Economic Effects of Media Concentration: Estimates from a Model of the Newspaper Firm

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  • Dertouzos, James N
  • Trautman, William B

Abstract

By specifying and estimating a five-equation model of newspaper operations, this paper provides evidence useful for addressing several issues concerning media concentration. On the cost side, the results indicate that there exist significant scale economies in the production of circulation and space. On the other hand, the evidence suggests that chain newspapers can not produce output more efficiently than independents, all things equal. On the demand side, rival newspapers located in contiguous geographic markets appear to have an important competitive effect on the demand for circulation. However, broadcast stations do not seem to affect demand for newspaper advertising and circulation. Copyright 1990 by Blackwell Publishing Ltd.

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  • Dertouzos, James N & Trautman, William B, 1990. "Economic Effects of Media Concentration: Estimates from a Model of the Newspaper Firm," Journal of Industrial Economics, Wiley Blackwell, vol. 39(1), pages 1-14, September.
    • Handle: RePEc:bla:jindec:v:39:y:1990:i:1:p:1-14
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