Effects of Mergers in Two-Sided Markets: The US Radio Industry

Przemyslaw Jeziorski

American Economic Journal: Microeconomics, 2014, vol. 6, issue 4, 35-73

Abstract: This study examines mergers in two-sided markets using a structural supply-and-demand model that employs data from the 1996-2006 merger wave in the U.S. radio industry. In particular, it identities the conflicting incentives for merged firms to exercise market power on both listener and advertiser sides of the market, and disaggregates the effects of mergers into changes in product variety and advertising quantity. Specifically, it finds 0.2% listener welfare increase (+0.3% from increased product variety, and -0.1% from decreased ad quantity) and 21% advertiser welfare decrease (-17% from changes in product variety, and -5% from decreased ad quantity).

JEL-codes: G34 L13 L82 L88 M37 (search for similar items in EconPapers)
Date: 2014
Note: DOI: 10.1257/mic.6.4.35
References: Add references at CitEc
Citations: View citations in EconPapers (46)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/mic.6.4.35 (application/pdf)
http://www.aeaweb.org/aej/mic/data/0604/2012-0018_data.zip (application/zip)
http://www.aeaweb.org/aej/mic/app/0604/2012-0018_app.pdf (application/pdf)
http://www.aeaweb.org/aej/mic/ds/0604/2012-0018_ds.zip (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aejmic:v:6:y:2014:i:4:p:35-73

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Journal: Microeconomics is currently edited by Johannes Hörner

More articles in American Economic Journal: Microeconomics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().