Semi-collusion in media markets
This paper explores the effects that collusion can have in newspaper markets where firms compete for advertising as well as for readership. We compare three modes of competition: i) competition in the advertising and the reader market, ii) semi-collusion over advertising (with competition in the reader market), and iii) (full) collusion in both the advertising and the reader market. We find that semi-collusion leads to less advertising (but higher advertising prices) and lower copy prices which is beneficial for readers. Under certain circumstances, semi-collusion may even benefit advertisers as newspaper circulation is higher. In addition, total welfare may rise due to semi-collusion. Results under full collusion are ambiguous. However, even under full collusion newspaper copy prices may decrease and welfare may increase.
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Postal: +49 211 81-13820|
Phone: +49 211 81-15494
Fax: +49 211 81-15499
Web page: http://www.dice.hhu.de/en.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Osborne, Martin J. & Pitchik, Carolyn, 1983.
"Cartels, Profits, and Excess Capacity,"
83-09, C.V. Starr Center for Applied Economics, New York University.
- d'ASPREMONT, Claude & JACQUEMIN, Alexis, .
"Cooperative and noncooperative R&D in duopoly with spillovers,"
CORE Discussion Papers RP
823, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-37, December.
- Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
- Kaiser, Ulrich & Wright, Julian, 2006.
"Price structure in two-sided markets: Evidence from the magazine industry,"
International Journal of Industrial Organization,
Elsevier, vol. 24(1), pages 1-28, January.
- Kaiser, Ulrich & Wright, Julian, 2004. "Price Structure in Two-sided Markets: Evidence from the Magazine Industry?," ZEW Discussion Papers 04-80, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- James W. Friedman & Jacques-Francois Thisse, 1993.
"Partial Collusion Fosters Minimum Product Differentiation,"
RAND Journal of Economics,
The RAND Corporation, vol. 24(4), pages 631-645, Winter.
- FRIEDMAN, James W. & THISSE, Jacques-François, . "Partial collusion fosters minimum product differentiation," CORE Discussion Papers RP 1070, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jean-Charles Rochet & Jean Triole, 2002.
"Platform competition in two sided markets,"
LSE Research Online Documents on Economics
24929, London School of Economics and Political Science, LSE Library.
- Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, 06.
- Jean-Charles Rochet & Jean Tirole, 2014. "Platform Competition in Two-Sided Markets," CPI Journal, Competition Policy International, vol. 10.
- Jean-Charles Rochet & Jean Triole, 2002. "Platform Competition in Two Sided Markets," FMG Discussion Papers dp409, Financial Markets Group.
- Rochet, Jean-Charles & Tirole, Jean, 2003. "Platform Competition in Two-Sided Markets," IDEI Working Papers 152, Institut d'Économie Industrielle (IDEI), Toulouse.
- Crampes, Claude & Haritchabalet, Carole & Jullien, Bruno, 2006.
"Advertising, Competition and Entry in Media Industries,"
IDEI Working Papers
374, Institut d'Économie Industrielle (IDEI), Toulouse.
- Claude Crampes & Carole Haritchabalet & Bruno Jullien, 2005. "Advertising, Competition and Entry in Media Industries," CESifo Working Paper Series 1591, CESifo Group Munich.
- Ambarish Chandra & Allan Collard-Wexler, 2009.
"Mergers in Two-Sided Markets: An Application to the Canadian Newspaper Industry,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 18(4), pages 1045-1070, December.
- Chandra, Ambarish & Collard-Wexler, Allan, 2008. "Mergers in Two-Sided Markets: An Application to the Canadian Newspaper Industry," MPRA Paper 7954, University Library of Munich, Germany.
- E. Glen Weyl, 2010. "A Price Theory of Multi-sided Platforms," American Economic Review, American Economic Association, vol. 100(4), pages 1642-72, September.
- Øystein Foros & Bjørn Hansen & Jan Sand, 2002. "Demand-side Spillovers and Semi-collusion in the Mobile Communications Market," Journal of Industry, Competition and Trade, Springer, vol. 2(3), pages 259-278, September.
- David S. Evans & Richard Schmalensee, 2005.
"The Industrial Organization of Markets with Two-Sided Platforms,"
NBER Working Papers
11603, National Bureau of Economic Research, Inc.
- David Evans & Richard Schmalensee, 2007. "The Industrial Organization of Markets with Two-Sided Platforms," CPI Journal, Competition Policy International, vol. 3.
- Markus Reisinger & Ludwig Ressner & Richard Schmidtke, 2009. "TWO-SIDED MARKETS WITH PECUNIARY AND PARTICIPATION EXTERNALITIES -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 57(1), pages 32-57, 03.
- Simon P. Anderson & Stephen Coate, 2003.
"Market Provision of Broadcasting: A Welfare Analysis,"
Virginia Economics Online Papers
358, University of Virginia, Department of Economics.
- Peitz, Martin & Valletti, Tommaso, 2004.
"Content and Advertising in the Media: Pay-TV versus Free-To-Air,"
CEPR Discussion Papers
4771, C.E.P.R. Discussion Papers.
- Peitz, Martin & Valletti, Tommaso M., 2008. "Content and advertising in the media: Pay-tv versus free-to-air," International Journal of Industrial Organization, Elsevier, vol. 26(4), pages 949-965, July.
- Kaiser, Ulrich & Song, Minjae, 2009. "Do media consumers really dislike advertising? An empirical assessment of the role of advertising in print media markets," International Journal of Industrial Organization, Elsevier, vol. 27(2), pages 292-301, March.
- Mark Armstrong, 2005.
"Competition in Two-Sided Markets,"
- Charles Romeo & Russell Pittman & Norman Familant, 2003. "Do Newspaper JOAs Charge Monopoly Advertising Rates?," Review of Industrial Organization, Springer, vol. 22(2), pages 121-138, March.
- Marc Rysman, 2009. "The Economics of Two-Sided Markets," Journal of Economic Perspectives, American Economic Association, vol. 23(3), pages 125-43, Summer.
- Elena Argentesi & Lapo Filistrucchi, 2005.
"Estimating market power in a two-sided market: the case of newspapers,"
Economics Working Papers
ECO2005/07, European University Institute.
- Elena Argentesi & Lapo Filistrucchi, 2007. "Estimating market power in a two-sided market: The case of newspapers," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1247-1266.
- Fershtman, C. & Gandal, N., 1991.
37-91, Tel Aviv.
- repec:rje:randje:v:37:y:2006:3:p:645-667 is not listed on IDEAS
- Roson Roberto, 2005. "Two-Sided Markets: A Tentative Survey," Review of Network Economics, De Gruyter, vol. 4(2), pages 1-19, June.
When requesting a correction, please mention this item's handle: RePEc:zbw:dicedp:11. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.