Journal
INTERNATIONAL JOURNAL OF INDUSTRIAL ORGANIZATION
Volume 24, Issue 1, Pages 1-28Publisher
ELSEVIER
DOI: 10.1016/j.ijindorg.2005.06.002
Keywords
two-sided markets; magazine markets; advertising
Categories
Ask authors/readers for more resources
We present and estimate a model of competition in a two-sided market: the market for magazine readership and advertising. Using data on magazines in Germany, we find evidence that magazines have properties of two-sided markets. The results are consistent with the perception that prices for readers are 'subsidized' and that magazines make all their money from advertisers. Consistent with advertisers valuing readers more than readers value advertisements, our results imply that higher demand on the reader side increases ad rates, but that higher demand on the advertising side decreases cover prices. (c) 2005 Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available