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Product differentiation and advertising in multiple markets

Author

Listed:
  • Wenjiao Che

    (Graduate School of Economics, Nagoya University)

  • Toshiki Kodera

    (Graduate School of Economics, Nagoya University)

Abstract

We study a Hotelling location game where media platforms compete with the same content in two separate markets. The findings show that media platforms may provide less differentiated content if the non-negativity constraint on prices is binding in at least one market. Moreover, content differentiation is decreasing in the size of market where the constraint is binding.

Suggested Citation

  • Wenjiao Che & Toshiki Kodera, 2014. "Product differentiation and advertising in multiple markets," Economics Bulletin, AccessEcon, vol. 34(1), pages 400-408.
    • Handle: RePEc:ebl:ecbull:eb-13-00380
    as

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    References listed on IDEAS

    as
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    4. Toshiki Kodera, 2010. "Spatial competition among multiple platforms," Economics Bulletin, AccessEcon, vol. 30(2), pages 1516-1525.
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    6. Peitz, Martin & Valletti, Tommaso M., 2008. "Content and advertising in the media: Pay-tv versus free-to-air," International Journal of Industrial Organization, Elsevier, vol. 26(4), pages 949-965, July.
    7. Simon P. Anderson & Stephen Coate, 2005. "Market Provision of Broadcasting: A Welfare Analysis," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 947-972.
    8. Nathalie Sonnac, 2000. "Readers' Attitudes Toward Press Advertising: Are They Ad-Lovers or Ad-Averse?," Journal of Media Economics, Taylor & Francis Journals, vol. 13(4), pages 249-259.
    9. Jean J. Gabszewicz & Didier Laussel & Nathalie Sonnac, 2004. "Programming and Advertising Competition in the Broadcasting Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(4), pages 657-669, December.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Two-sided markets; Multiple markets; Product differentiation;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L8 - Industrial Organization - - Industry Studies: Services

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