Newspapers in Times of Low Advertising Revenues

Charles Angelucci and Julia Cagé

American Economic Journal: Microeconomics, 2019, vol. 11, issue 3, 319-64

Abstract: We model the consequences on newspapers' content and prices of a reduction in advertising revenues. Newspapers choose the size of their newsroom, and readers are heterogeneous in their ideal amount of journalistic-intensive content. We show that a reduction in advertising revenues lowers newspapers' incentives to produce journalistic-intensive content. We also build a unique dataset on French newspapers between 1960 and 1974 and perform a difference-in-differences analysis exploiting the introduction of advertising on television, which affected national newspapers more severely than local ones. We find robust evidence of a decrease in the amount of journalistic-intensive content produced and the subscription price.

JEL-codes: L11 L82 M37 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/mic.20170306
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Citations: View citations in EconPapers (34)

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Related works:
Working Paper: Newspapers in Times of Low Advertising Revenues (2019)
Working Paper: Newspapers in Times of Low Advertising Revenues (2019)
Working Paper: Newspapers in Times of Low Advertising Revenues (2016)
Working Paper: Newspapers in Times of Low Advertising Revenues (2015)
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