The Market for Fake Observations
We show how increased competition in a media market may have implications for the competition between firms that are advertising in that medium. We apply a simple model of a product market with network externalities where firms buy advertising space in a media market and find that there is more entry in the product market, the more competitive the media market is. The paper is the first combining a study of media markets with a behavioral foundation of how advertising a¤ects the demand for the advertised products.
|Date of creation:||04 Nov 2011|
|Date of revision:|
|Publication status:||Published as Brekke, Kjell Arne and Tore Nilssen, 'Media Competition Enhances New-Product Entry: On the Market for Fake Observations' in Information Economics and Policy, 2015, pages 59-66.|
|Contact details of provider:|| Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway|
Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
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