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Concentration in the Press Industry and the Theory of the "Circulation Spiral


  • Jean J, Gabszewicz


  • Didier Laussel


  • Nathalie Sonnac



In this paper we model a situation competition between two editorswho are rivals in both the newspapers' and advertising industries. To identifythe consequences of this competition, we analyse a two-period sequentialgame whose players are the editors each selling a differentiated newspaper,like newspapers of different political content. We characterise the equilibriaand explore how theydep end on the number of ad-avoiders and ad-lovers,and on the intensityof reader's attraction or repulsion feelings for advertising.Our main finding is that equilibria are often observed in the sequential game,at which one of the editors prevents the entryof his rival and fullymonop oliesboth the press and advertising markets.

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  • Jean J, Gabszewicz & Didier Laussel & Nathalie Sonnac, 2003. "Concentration in the Press Industry and the Theory of the "Circulation Spiral," Working Papers 2003-21, Center for Research in Economics and Statistics.
  • Handle: RePEc:crs:wpaper:2003-21

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    Cited by:

    1. Argentesi, Elena & Ivaldi, Marc, 2005. "Market Definition in the Printed Media Industry: Theory and Practice," CEPR Discussion Papers 5096, C.E.P.R. Discussion Papers.

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