The newspaper industry is a two-sided market: the readers market and the advertising market are closely linked by inter-market network externalities. We estimate market power in the Italian newspaper industry by building a structural model which encompasses a demand estimation of both sides of the market and where profit maximization by the publishing firms takes into account the interactions between them. The question that we address is whether the observed price pattern is consistent with profit-maximizing behavior by competing firms or is instead driven by some form of (tacit or explicit) coordinated practice.

Estimating Market Power in a Two-Sided Market: The Case of Newspapers

ARGENTESI, ELENA;
2004

Abstract

The newspaper industry is a two-sided market: the readers market and the advertising market are closely linked by inter-market network externalities. We estimate market power in the Italian newspaper industry by building a structural model which encompasses a demand estimation of both sides of the market and where profit maximization by the publishing firms takes into account the interactions between them. The question that we address is whether the observed price pattern is consistent with profit-maximizing behavior by competing firms or is instead driven by some form of (tacit or explicit) coordinated practice.
2004
Raccolta dei papers presentati alla 15° Conferenza Annuale EC(2): The Econometrics of Industrial Organization, disponibili alla pagina web dell'evento (http://www.vcharite.univ-mrs.fr/EC2/accueil.htm)
Argentesi E.; Filistrucchi L.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/30305
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