Abstract

http://ssrn.com/abstract=1694313
 
 

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Merger Simulation in a Two-Sided Market: The Case of the Dutch Daily Newspapers


Lapo Filistrucchi


Tilburg University, Department of Economics, CentER & TILEC; University of Florence, Dipartimento di Scienze Economiche

Tobias J. Klein


Tilburg 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 Michielsen


Tilburg 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

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Date posted: October 20, 2010  

Suggested Citation

Filistrucchi, Lapo and Klein, Tobias J. and Michielsen, Thomas, Merger Simulation in a Two-Sided Market: The Case of the Dutch Daily Newspapers (September 30, 2010). NET Institute Working Paper No. 10-15. Available at SSRN: http://ssrn.com/abstract=1694313 or http://dx.doi.org/10.2139/ssrn.1694313

Contact Information

Lapo Filistrucchi (Contact Author)
Tilburg University, Department of Economics, CentER & TILEC ( email )
P.O. Box 90153
Tilburg, Noord-Brabant NL-5000 LE
Netherlands
+31 13 466 3360 (Phone)
+31 13 466 3042 (Fax)
HOME PAGE: http://center.uvt.nl/staff/filistrucchi/
University of Florence, Dipartimento di Scienze Economiche ( email )
via delle Pandette 9
Florence, Florence IT-50127
Italy
Tobias J. Klein
Tilburg University - Department of Econometrics & Operations Research ( email )
Tilburg, 5000 LE
Netherlands
HOME PAGE: http://center.uvt.nl/staff/klein/index.html
Tilburg University - Center for Economic Research (CentER)
P.O. Box 90153
Tilburg, 5000 LE
Netherlands
Institute for the Study of Labor (IZA) ( email )
P.O. Box 7240
Bonn, D-53072
Germany
Netspar
P.O. Box 90153
Tilburg, 5000 LE
Netherlands
Tilburg Law and Economics Center (TILEC)
Warandelaan 2
Tilburg, 5000 LE
Netherlands
Thomas Michielsen
Tilburg University - Center and Faculty of Economics and Business Administration ( email )
P.O. Box 90153
Tilburg, 5000 LE
Netherlands
Tilburg Sustainability Center ( email )
P.O. Box 90153
Tilburg, North Brabant 5000 LE
Netherlands
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