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Internet use, competition, and geographical rescoping in Yellow Pages advertising

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  • Chiou, Lesley
  • Kafali, E. Nilay
  • Rysman, Marc

Abstract

This paper examines the effect of Internet penetration on competition and prices in the market for Yellow Pages advertising. We find that the diffusion of the Internet is associated with a decrease in the number of competitors and average prices for printed advertisements in the long-run. However, the decrease in prices is attenuated both by increasing market concentration as firms exit and by geographic rescoping as remaining firms reposition their products.

Suggested Citation

  • Chiou, Lesley & Kafali, E. Nilay & Rysman, Marc, 2020. "Internet use, competition, and geographical rescoping in Yellow Pages advertising," Information Economics and Policy, Elsevier, vol. 52(C).
    • Handle: RePEc:eee:iepoli:v:52:y:2020:i:c:s016762451930109x
    DOI: 10.1016/j.infoecopol.2020.100867
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    More about this item

    Keywords

    Internet; Competition; Product positioning; Price dispersion; Geographical targeting;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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