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Advertising and competitive access pricing to internet services or pay-TV

Jean Gabszewicz, Didier Laussel () and Nathalie Sonnac

No 2006044, Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques

Abstract: We study access pricing by platforms providing internet services or pay-TV to users while they allow advertisers to have access to these users against payment via ads or banners. Users are assumed to be ad-haters. It is shown that equilibrium access prices in the users’ market are increasing in the dimension of the advertising market : the larger the number of advertisers, the higher the access prices for both platforms.

Pages: 10
Date: 2006-09-01
New Economics Papers: this item is included in nep-com, nep-cul, nep-mic, nep-mkt and nep-net
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Working Paper: Advertising and competitive access pricing to internet services or pay-TV (2006) Downloads
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