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Relevant Market and Pricing Behavior of Regional Newspapers in the Netherlands

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  • Hans L. van Kranenburg

Abstract

The aim of this study is to investigate the effect of market structure and area characteristics on the subscription prices and advertising rates for regional newspapers in the Netherlands. The price-market structure analysis in this study shows that there exists a negative relationship between concentration and prices. The results also show that advertising rates, differently to subscription prices, are significantly influenced by regional income and particularly by population density in the specific area. Furthermore, the evidence indicates that the relevant market for regional newspapers in the Netherlands is a market which encompasses regional newspapers, national newspapers and other media sources. Ziel der vorliegenden Untersuchung ist es, den Einfluss von Marktstruktur und anderen regionalen Einflussgrößen auf die Preise der Zeitungen für Abonnements und Anzeigen zu analysieren. Im Ergebnis zeigt sich insbesondere eine negative Korrelation von Konzentration und Zeitungspreisen. Die Preise für Anzeigen hängen - anders als die für Abonnements - signifikant vom Einkommensniveau und der Bevölkerungsdichte in der jeweiligen Region ab. Weiterhin deutet die empirische Evidenz darauf hin, dass zu den relevanten Märkten für Regionalzeitungen in den Niederlanden auch die überregionalen Zeitungen und andere Medien gehören.

Suggested Citation

  • Hans L. van Kranenburg, 2005. "Relevant Market and Pricing Behavior of Regional Newspapers in the Netherlands," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 74(3), pages 73-84.
  • Handle: RePEc:diw:diwvjh:74-3-9
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    File URL: http://ejournals.duncker-humblot.de/doi/pdf/10.3790/vjh.74.3.73
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    1. Scheffman, David T & Spiller, Pablo T, 1987. "Geographic Market Definition under the U.S. Department of Justice Merger Guidelines," Journal of Law and Economics, University of Chicago Press, vol. 30(1), pages 123-147, April.
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    3. Robert R. Kerton, 1973. "Price Effects of Market Power in the Canadian Newspaper Industry," Canadian Journal of Economics, Canadian Economics Association, vol. 6(4), pages 602-606, November.
    4. Evans, William N & Froeb, Luke M & Werden, Gregory J, 1993. "Endogeneity in the Concentration-Price Relationship: Causes, Consequences, and Cures," Journal of Industrial Economics, Wiley Blackwell, vol. 41(4), pages 431-438, December.
    5. Mario Forni, 2004. "Using Stationarity Tests in Antitrust Market Definition," American Law and Economics Review, Oxford University Press, vol. 6(2), pages 441-464.
    6. Hans van Kranenburg, 2002. "Mobility and Market Structure in the Dutch Daily Newspaper Market Segments," Journal of Media Economics, Taylor & Francis Journals, vol. 15(2), pages 107-123.
    7. van Kranenburg, 2001. "Economic Effects of Consolidations of Publishers and Newspapers in The Netherlands," Journal of Media Economics, Taylor & Francis Journals, vol. 14(2), pages 61-76.
    8. Chaudhri, Vivek, 1998. "Pricing and efficiency of a circulation industry: The case of newspapers," Information Economics and Policy, Elsevier, vol. 10(1), pages 59-76, March.
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