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Newspaper habit

Author

Listed:
  • Ralf Dewenter

    (University of Düsseldorf)

  • Juergen Roesch

    (University of Duesseldorf)

Abstract

This note analyzes the impact of habit formation in media markets on the behavior of a two-sided newspaper platform. Using a simple dynamic approach we find that habit formation (as well as indirect network effects) lead to higher quantities and profits. Price setting, however, strongly depends on network as well as on habit effects.

Suggested Citation

  • Ralf Dewenter & Juergen Roesch, 2011. "Newspaper habit," Economics Bulletin, AccessEcon, vol. 31(4), pages 2884-2889.
    • Handle: RePEc:ebl:ecbull:eb-11-00562
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I4-P260.pdf
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    References listed on IDEAS

    as
    1. Kaiser, Ulrich & Wright, Julian, 2006. "Price structure in two-sided markets: Evidence from the magazine industry," International Journal of Industrial Organization, Elsevier, vol. 24(1), pages 1-28, January.
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    JEL classification:

    • L0 - Industrial Organization - - General

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