Advertising and the rise of the free daily newspapers

We analyze the competition between two newspapers in a vertical differentiation model where the qualities of the journals are determined endogenously in the first stage of the game. We show that when the advertising revenues per reader increase there is a critical value above which the quality of the low quality newspaper discontinuously falls while it become similtaneously a free newspaper. This is beneficial to the high quality journal and detrimental to the readers.

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Year of publication:	2006-10-01
Authors:	Jean J. , GABSZEWICZ ; Didier, LAUSSEL ; Nathalie, SONNAC
Institutions:	Institut de Recherche Économique et Sociale (IRES), École des Sciences Économiques de Louvain
Subject:	Advertising \| Newspaper quality

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Extent:	application/pdf
Series:	Discussion Papers (ECON - Département des Sciences Economiques).
Type of publication:	Book / Working Paper
Language:	English
Notes:	The text is part of a series UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Sciences Economiques Number 2006045 1 pages long
Classification:	L15 - Information and Product Quality; Standardization and Compatibility ; L82 - Entertainment; Media (Performing Arts, Visual Arts, Broadcasting, Publishing, etc.)
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004984789