Estimating Demand with Multi-Homing in Two-Sided Markets

45 Pages Posted: 17 Aug 2021

See all articles by Pauline Affeldt

Pauline Affeldt

German Institute for Economic Research (DIW Berlin); Technische Universität Berlin (TU Berlin)

Elena Argentesi

University of Bologna - Department of Economics

Lapo Filistrucchi

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: August 2021

Abstract

We empirically investigate the relevance of multi-homing in two-sided markets. First, we build a micro-founded structural econometric model that encompasses demand for differentiated products and allows for multi-homing on both sides of the market. We then use an original dataset on the Italian daily newspaper market that includes information on double-homing by readers to estimate readers’ and advertisers’ demand. The results show that an econometric model that does not allow for multihoming is likely to produce biased estimates of demand on both sides of the market. In particular, on the reader side, accounting for multi-homing helps to recognize complementarity between products; on the advertising side, it allows to measure to what extent advertising demand depends on the shares of exclusive and overlapping readers.

Keywords: Two-sided markets, platforms, multi-homing, media, advertising

JEL Classification: C51,D43,C13,L82,M37

Suggested Citation

Affeldt, Pauline and Argentesi, Elena and Filistrucchi, Lapo, Estimating Demand with Multi-Homing in Two-Sided Markets (August 2021). DIW Berlin Discussion Paper No. 1965, Available at SSRN: https://ssrn.com/abstract=3905859 or http://dx.doi.org/10.2139/ssrn.3905859

Pauline Affeldt (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Technische Universität Berlin (TU Berlin) ( email )

Straße des 17
Juni 135
Berlin, 10623
Germany

Elena Argentesi

University of Bologna - Department of Economics ( email )

Piazza Scaravilli 2
Bologna, BO 40141
Italy
+39 051 209 2664 (Phone)
+39 051 209 8040 (Fax)

HOME PAGE: http://https://www.unibo.it/sitoweb/elena.argentesi/en

Lapo Filistrucchi

affiliation not provided to SSRN

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