Abstract

http://ssrn.com/abstract=1404392
 
 

References (27)



 
 

Citations (3)



 


 



Prices and Network Effects in Two-Sided Markets: The Belgian Newspaper Industry


Patrick J. G. Van Cayseele


KU Leuven - Department of Economics

Stijn Vanormelingen


Hogeschool-Universiteit Brussel (HUBrussel); KU Leuven - LICOS - Centrum voor Transitie-economie

February 26, 2009


Abstract:     
This paper investigates the two-sided nature of the newspaper industry. We explicitly take into account cross network effects that exist between advertisers and newspaper readers. On one side, advertisers' demand for publicity space depends on the number of newspaper readers and their characteristics. On the other side, readers' demand can be, positively or negatively, influenced by the number of advertisements. In addition, editors may own several newspapers and hence a variety of cross-market effects that result from changes in market prices exist. To estimate demand parameters for both sides of the market, a specific structural model is needed that takes into account those effects. We estimate network effects and price elasticities for Belgian newspaper publishers to assess market power and the degree of competition in the market, which experienced a large consolidation wave over the last decades. This allows us to evaluate a recent merger in the Belgian newspaper industry.

Number of Pages in PDF File: 36

Keywords: two-sided markets, newspapers, demand estimation

JEL Classification: L11, L82, C23

working papers series


Download This Paper

Date posted: May 14, 2009 ; Last revised: May 29, 2009

Suggested Citation

Van Cayseele, Patrick J. G. and Vanormelingen, Stijn, Prices and Network Effects in Two-Sided Markets: The Belgian Newspaper Industry (February 26, 2009). Available at SSRN: http://ssrn.com/abstract=1404392 or http://dx.doi.org/10.2139/ssrn.1404392

Contact Information

Patrick G. J. Van Cayseele
KU Leuven - Department of Economics ( email )
Leuven, B-3000
Belgium
+32-16-326830 (Phone)
+32-16-326796 (Fax)
Stijn Vanormelingen (Contact Author)
Hogeschool-Universiteit Brussel (HUBrussel) ( email )
Stormstraat 2
Brussels, 1000
Belgium
KU Leuven - LICOS - Centrum voor Transitie-economie ( email )
Deberiotstraat, 34
Leuven, B-3000
Belgium
Feedback to SSRN


Paper statistics
Abstract Views: 921
Downloads: 202
Download Rank: 87,322
References:  27
Citations:  3

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.390 seconds