IDEAS home Printed from https://ideas.repec.org/p/ris/vhsuwp/2003_012.html
   My bibliography  Save this paper

Estimating the Value of Advertising

Author

Listed:
  • Dewenter, Ralf

    () (Helmut Schmidt University, Hamburg)

Abstract

Mass-medias are characterized by at least two interrelated markets. Therefore, the media firm has to satisfy two interdependent demands, the demand for magazines and the demand for advertising. The utility of the readers is affected by the information of the editorial and the advertising share. The advertising customers in contrast, are interested in the quality and quantity of the target group. The present paper analyzes both the marginal willingness to pay of readers for advertising and the marginal willingness to pay of advertising customers for sociodemographic attributes of the readers. Using the hedonic price approach the shadow prices are calculated using simple OLS and the Box-Cox regressions. Subsequently, because of the interrelationship of the demands, both markets are modelled simultaneously using 2SLS techniques.

Suggested Citation

  • Dewenter, Ralf, 2003. "Estimating the Value of Advertising," Working Paper 12/2003, Helmut Schmidt University, Hamburg.
  • Handle: RePEc:ris:vhsuwp:2003_012
    as

    Download full text from publisher

    File URL: http://www.hsu-hh.de/fgvwl/index_KoNWPn0xXYaX9GXi.html
    File Function: Full text
    Download Restriction: no

    More about this item

    Keywords

    Mass-Media; Magazines; Hedonic Prices; Box-Cox Approach;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

    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:ris:vhsuwp:2003_012. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Klaus Bekcmann). General contact details of provider: http://edirc.repec.org/data/egbwhde.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.