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The economic advantage of “being the voice of the majority”

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  • RESENDE, Joana

Abstract

In this paper, we analyze the static interaction in prices between two newspapers that compete with each other in the circulation and in the advertising markets. We exploit the two-sided nature of the newspaper industry to analyze a demand-side effect that generates an endogenous mechanism of concentration in the press industry: "the circulation spiral" effect.

Suggested Citation

  • RESENDE, Joana, 2007. "The economic advantage of “being the voice of the majority”," CORE Discussion Papers 2007028, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:2007028
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    File URL: http://www.uclouvain.be/cps/ucl/doc/core/documents/coredp2007_28.pdf
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    1. GABSZEWICZ, Jean & LAUSSEL, Didier & SONNAC, Nathalie, 2002. "Concentration in the press industry and the theory of the "circulation spiral"," CORE Discussion Papers 2002064, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Cited by:

    1. Rabah Amir & Jean Gabszewicz & Joana Resende, 2014. "Thematic Clubs and the Supremacy of Network Externalities," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(5), pages 706-729, October.
    2. repec:bla:buecrs:v:68:y:2016:i:s1:p:133-145 is not listed on IDEAS
    3. Vitor Miguel Ribeiro & João Correia-da-Silva & Joana Resende, 2016. "Nesting Vertical And Horizontal Differentiation In Two-Sided Markets," Bulletin of Economic Research, Wiley Blackwell, vol. 68(S1), pages 133-145, December.
    4. Anderson, Simon P & Waldfogel, Joel, 2015. "Preference Externalities in Media Markets," CEPR Discussion Papers 10835, C.E.P.R. Discussion Papers.

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