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Media See-saws: Winners and Losers in Platform Markets


  • Anderson, Simon P
  • Peitz, Martin


We customize the aggregative game approach to oligopoly to study media platforms which may differ by popularity. Advertiser, platform, and consumer surplus are tied together by a simple summary statistic. When media are ad-financed and ads are a nuisance to consumers we establish see-saws between consumers and advertisers. Entry increases consumer surplus, but decreases advertiser surplus if industry platform profits decrease with entry. Merger decreases consumer surplus, but advertiser surplus tends to increase. By contrast, when platforms use two-sided pricing or consumers like advertising, advertiser and consumer interests are often aligned.

Suggested Citation

  • Anderson, Simon P & Peitz, Martin, 2017. "Media See-saws: Winners and Losers in Platform Markets," CEPR Discussion Papers 12214, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:12214

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    Cited by:

    1. Belleflamme, Paul & Peitz, Martin, 2017. "Platform Competition: Who Benefits from Multihoming?," CEPR Discussion Papers 12452, C.E.P.R. Discussion Papers.

    More about this item


    advertising; Aggregative games; Entry; Media economics; mergers;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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