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Does advertising lower the price of newspapers to consumers? A theoretical appraisal

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Jaskold Gabszewicz, Jean [UCL] Laussel, Didier [] Sonnac, Nathalie []

We study whether advertising subsidizes consumers newspapers' prices. Using a model representing the two-sided network effects between the advertising and printed media industries, we show that the answer should be nuanced according to the readership's attitude toward advertising.

Document type Article de périodique (Journal article)
Access type Accès restreint
Publication date 2005
Language Anglais
Journal information "Economics Letters" - Vol. 87, no. 1, p. 127-134 (Avril 2005)
Peer reviewed yes
Publisher Elsevier BV (Amsterdam, Netherlands)
issn 0165-1765
Publication status Publié
Affiliations UCL - EUEN/CORE - Center for operations research and econometrics
Université de la Méditerranée - Groupement de Recherche en Économie Quantitative d'Aix-Marseille
National Institute of Statistics and Economic Studies Government of France - Research Center for Economics and Statistics
Keywords Press industry ; Media ; Network effects
Links
Bibliographic reference Jaskold Gabszewicz, Jean ; Laussel, Didier ; Sonnac, Nathalie. Does advertising lower the price of newspapers to consumers? A theoretical appraisal. In: Economics Letters, Vol. 87, no. 1, p. 127-134 (Avril 2005)
Permanent URL http://hdl.handle.net/2078.1/23419