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Competition in Print Advertising between Paid and Free Newspapers

Author

Listed:
  • Lydia Cheung

    (School of Economics, Auckland University of Technology)

  • Geoffrey Brooke

    (School of Economics, Auckland University of Technology)

Abstract

This paper looks at the market for print advertising in New Zealand, which is characterized by rich variation in ownership structures of overlapping paid daily metropolitan newspapers and free weekly suburban newspapers. We first present stylized empirical facts on advertising rates and readership shares, from an original dataset. We then present a simple model whose market outcome varies with ownership structure in the same manner as our empirical observation.

Suggested Citation

  • Lydia Cheung & Geoffrey Brooke, 2018. "Competition in Print Advertising between Paid and Free Newspapers," Working Papers 2018-01, Auckland University of Technology, Department of Economics.
    • Handle: RePEc:aut:wpaper:201801
    as

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    File URL: https://www.aut.ac.nz/__data/assets/pdf_file/0020/142049/Economics-WP-2018-01.pdf
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    References listed on IDEAS

    as
    1. Stephen Lacy & David Coulson & Hiromi Cho, 2002. "Competition for Readers Among U.S. Metropolitan Daily, Nonmetropolitan Daily, and Weekly Newspapers," Journal of Media Economics, Taylor & Francis Journals, vol. 15(1), pages 21-40.
    2. W. M. Corden, 1952. "The Maximisation of Profit by a Newspaper," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 20(3), pages 181-190.
    3. Ambarish Chandra & Allan Collard‐Wexler, 2009. "Mergers in Two‐Sided Markets: An Application to the Canadian Newspaper Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(4), pages 1045-1070, December.
    4. Mark Armstrong, 2006. "Competition in two‐sided markets," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 668-691, September.
    5. Ying Fan, 2013. "Ownership Consolidation and Product Characteristics: A Study of the US Daily Newspaper Market," American Economic Review, American Economic Association, vol. 103(5), pages 1598-1628, August.
    6. Ferguson, James M, 1983. "Daily Newspaper Advertising Rates, Local Media Cross-Ownership, Newspaper Chains, and Media Competition," Journal of Law and Economics, University of Chicago Press, vol. 26(3), pages 635-654, October.
    7. 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.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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