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The Market for Fake Observations

  • Brekke, Kjellr Arne

    ()

    (Dept. of Economics, University of Oslo)

  • Nilsen , Tore

    ()

    (Dept. of Economics, University of Oslo)

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.

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File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2011/Memo-25-2011.pdf
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Paper provided by Oslo University, Department of Economics in its series Memorandum with number 25/2011.

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Length: 20 pages
Date of creation: 04 Nov 2011
Date of revision:
Publication status: Forthcoming as Brekke, Kjell Arne and Tore Nilssen, 'Media Competition Enhances New-Product Entry: On the Market for Fake Observations' in Information Economics and Policy.
Handle: RePEc:hhs:osloec:2011_025
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
Email:


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  1. Nilssen,T. & Sorgard,L., 2001. "Who are the advertisers?," Memorandum 19/2001, Oslo University, Department of Economics.
  2. Hans Jarle Kind & Tore Nilssen & Lars Sørgard, 2009. "Business Models for Media Firms: Does Competition Matter for how they Raise Revenue?," CESifo Working Paper Series 2713, CESifo Group Munich.
  3. Victor Ginsburgh & David Throsby, 2006. "Handbook of the Eonomics of Art and Culture," ULB Institutional Repository 2013/152412, ULB -- Universite Libre de Bruxelles.
  4. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, June.
  5. Anthony Dukes, 2004. "The Adverstising Market in a Product Oligopoly," Journal of Industrial Economics, Wiley Blackwell, vol. 52(3), pages 327-348, 09.
  6. Kenneth C. Wilbur, 2008. "A Two-Sided, Empirical Model of Television Advertising and Viewing Markets," Marketing Science, INFORMS, vol. 27(3), pages 356-378, 05-06.
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