|
|
|
|
||||
|
||||
Merger Simulation in a Two-Sided Market: The Case of the Dutch Daily NewspapersLapo FilistrucchiTilburg University, Department of Economics, CentER & TILEC; University of Florence, Dipartimento di Scienze Economiche Tobias J. KleinTilburg University - Department of Econometrics & Operations Research; Tilburg University - Center for Economic Research (CentER); Institute for the Study of Labor (IZA); Netspar; Tilburg Law and Economics Center (TILEC) Thomas MichielsenTilburg University - Center and Faculty of Economics and Business Administration; Tilburg Sustainability Center September 30, 2010 NET Institute Working Paper No. 10-15 Abstract: We develop a structural econometric framework that allows us to simulate the effects of mergers among two-sided platforms selling differentiated products. We apply the proposed methodology to the Dutch newspaper industry. Our structural model encompasses demands for differentiated products on both sides of the market and profit maximization by competing oligopolistic publishers who choose subscription and advertising prices, while taking the interactions between the two-sides of the market into account. We measure the sign and size of the indirect network effects between the two sides of the market and simulate the effects of a hypothetical merger on prices and welfare.
Number of Pages in PDF File: 43 Keywords: Two-Sided Markets, Newspapers, Advertising, Network Effects, Merger Simulation, SSNIP Test JEL Classification: L13, L40, L82 working papers seriesDate posted: October 20, 2010Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo6 in 0.531 seconds
