A Note on Pricing and Efficiency in Print Media Industries

Kaiser, Ulrich

doi:10.2139/ssrn.320981

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A Note on Pricing and Efficiency in Print Media Industries

ZEW Discussion Paper No. 02-33

12 Pages Posted: 20 Nov 2002

See all articles by Ulrich Kaiser

Ulrich Kaiser

University of Southern Denmark - Faculty of Social Sciences; Center for Economic and Business Research (CEBR); Centre for European Economic Research

Date Written: May 15, 2002

Abstract

Actors on print media markets face two different (and interrelated) demand curves: the demand for copies and the demand for advertising space. This paper develops a realistic, yet simple, model of print media industries. In contrast to earlier studies, it takes into account that print media firms can neither set advertising space nor its price. A main finding of this paper is that competitive concerns regarding recent concentrations in print media industries are likely to be overstated since a print media firms' cover pricing is limited by its feedback on advertising demand.

Keywords: print media, advertising, product pricing

JEL Classification: D4, L4

Suggested Citation: Suggested Citation

Kaiser, Ulrich, A Note on Pricing and Efficiency in Print Media Industries (May 15, 2002). ZEW Discussion Paper No. 02-33, Available at SSRN: https://ssrn.com/abstract=320981 or http://dx.doi.org/10.2139/ssrn.320981