IDEAS home Printed from
   My bibliography  Save this article

Circulations, Revenues, and Profits in a Newspaper Market with Fixed Advertising Costs


  • Agostino Manduchi
  • Robert Picard


This article investigates a model in which 2 newspapers compete between them for readers with differentiated preferences and advertise new products at a cost per reader that decreases as the circulation increases. The model can account for the empirical regularity that the revenues from advertising and the profits of the newspapers increase more than proportionally with the circulation. A complementary finding is that a larger number of potential advertisers lowers the profits of both newspapers.

Suggested Citation

  • Agostino Manduchi & Robert Picard, 2009. "Circulations, Revenues, and Profits in a Newspaper Market with Fixed Advertising Costs," Journal of Media Economics, Taylor & Francis Journals, vol. 22(4), pages 211-238.
  • Handle: RePEc:taf:jmedec:v:22:y:2009:i:4:p:211-238
    DOI: 10.1080/08997760903375902

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. João Correia-da-Silva & Joana Resende, 2013. "Free daily newspapers: too strong incentives to print?," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 12(2), pages 113-130, August.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jmedec:v:22:y:2009:i:4:p:211-238. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.