Price Coordination in Two-Sided Markets: Competition in the TV Industry

Hans Jarle Kind, Tore Nilssen () and Lars Sørgard

No 18/2010, Memorandum from Oslo University, Department of Economics

Abstract: Under the current market structure in the TV industry advertising prices are typically set by TV channels while viewer prices are set by distributors (e.g., cable operators). The latter implies that the distributors partly internalize the competition between the TV channels, since they take into account the fact that a lower viewer price at one channel will reduce the willingness to pay for rival channels. We …find that a shift to a market structure where advertising prices as well as viewer prices are set competitively by the TV channels might increase joint industry pro…ts. The reason is that this market structure, in contrast to the one we observe today, directly addresses the two-sidedness of the market. We also show that this is to the bene…t of the viewers.

Keywords: Two-sided markets; advertising; media economics (search for similar items in EconPapers)
JEL-codes: L13 L22 L82 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2010-11-22
New Economics Papers: this item is included in nep-bec, nep-com, nep-cul and nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published as Jarle Kind, Hans, Tore Nilssen and Lars Sørgard, 'Inter-Firm Price Coordination in a Two-Sided Market' in International Journal of Industrial Organization, 2016, pages 101-112.

Downloads: (external link)
https://www.sv.uio.no/econ/english/research/unpubl ... 010/Memo-18-2010.pdf (application/pdf)

Related works:
Working Paper: Price Coordination in Two-Sided Markets: Competition in the TV Industry (2010)
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:hhs:osloec:2010_018

Access Statistics for this paper

More papers in Memorandum from Oslo University, Department of Economics Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Mari Strønstad Øverås ().