Abstract

http://ssrn.com/abstract=2164399
 
 

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Competition in the News Industry: Fighting Aggregators with Versions and Links


Joan Calzada


University of Barcelona - Department of Political Economics

Guillem Ordóñez Calafí


University of Warwick - Department of Economics

September 30, 2012

NET Institute Working Paper No. 12-22

Abstract:     
We analyze the linking and versioning strategies of a media …firm when facing competition from blogs, search engines and news aggregators. First, we show that when the publisher competes against a blog it is less likely to release a fighting version if this generates signi…ficant spillovers for its rival. Second, we analyze situations where a publisher will accept to offer part of its contents to a news aggregator in exchange for financial compensation. We explain that an agreement is possible when the aggregator is not overly dependent on the …firms contents. Finally, we show that when the …firm competes against a search engine, its linking and versioning strategies depend on the amount of trace it receives from its competitor. The …firm can use the search engine as its own low quality version and as a mechanism to expand its market since it gives access to many contents.

Number of Pages in PDF File: 36

Keywords: Product segmentation, versioning, linking, media market, search engines, news aggregators, Internet

JEL Classification: D83, D85, L12, L22, L86, M31

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Date posted: November 3, 2012  

Suggested Citation

Calzada, Joan and Ordóñez Calafí, Guillem, Competition in the News Industry: Fighting Aggregators with Versions and Links (September 30, 2012). NET Institute Working Paper No. 12-22. Available at SSRN: http://ssrn.com/abstract=2164399 or http://dx.doi.org/10.2139/ssrn.2164399

Contact Information

Joan Calzada (Contact Author)
University of Barcelona - Department of Political Economics ( email )
Av. Diagonal, 690
Barcelona, 08034
Spain
+34 93 403 7238 (Phone)
+34 93 402 4573 (Fax)
Guillem Ordóñez Calafí
University of Warwick - Department of Economics ( email )
Coventry CV4 7AL
United Kingdom
HOME PAGE: http://www2.warwick.ac.uk/fac/soc/economics/staff/phd_students/gordonez
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