IDEAS home Printed from https://ideas.repec.org/p/por/fepwps/350.html
   My bibliography  Save this paper

Free daily newspapers: too many incentives to print?

Author

Listed:
  • João Correia-da-Silva

    (CEF.UP and Faculdade de Economia, Universidade do Porto)

  • Joana Resende

    (CEF.UP and Faculdade de Economia, Universidade do Porto)

Abstract

We consider a model in which a free daily newspaper distributes news to readers and sells ad-space to advertisers, having private information about its readership. Depending on the type of readers in the market, the newspaper's may have a "plentiful and seeking" audience or a "lacking and avoiding" audience. We find that if the readers are plentiful and seeking, the newspaper prints an excessive number of copies. The rationale for this over-printing strategy lies on the newspaper's need to send a credible signal to the advertisers that there are plentiful and seeking readers in the market. When the readers are lacking and avoiding, the newspaper chooses the socially optimal tirage (does not try to cheat the advertisers).

Suggested Citation

  • João Correia-da-Silva & Joana Resende, 2009. "Free daily newspapers: too many incentives to print?," FEP Working Papers 350, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:350
    as

    Download full text from publisher

    File URL: http://www.fep.up.pt/investigacao/workingpapers/09.12.14_wp350.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    two-sided markets; asymmetric information; free press;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:por:fepwps:350. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/fepuppt.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.