News Aggregators and Competition Among Newspapers in the Internet

Nikrooz Nasr Esfahani and Doh-Shin Jeon

No 770, IDEI Working Papers from Institut d'Économie Industrielle (IDEI), Toulouse

Abstract: We study how the presence of a news aggregator affects quality choices of newspapers competing on the Internet. To provide a microfoundation for the role of the aggregator, we build a model of multiple issues where each newspaper chooses quality on each issue. This model captures the "business-stealing effect" and the "readership expansion effect" of the aggregator. We find that the presence of the aggregator leads newspapers to specialize in news coverage, changes quality choices from strategic substitutes to strategic complements and is likely to increase the quality of newspapers and social welfare, with an ambiguous effect on newspapers’ profits.

JEL-codes: D21 D43 L13 L82 (search for similar items in EconPapers)
Date: 2013-04, Revised 2014-07-16
New Economics Papers: this item is included in nep-com, nep-cul, nep-mic and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: News Aggregators and Competition among Newspapers on the Internet (2016)
Working Paper: News Aggregators and Competition Among Newspapers on the Internet (2014)
Working Paper: News Aggregators and Competition Among Newspapers in the Internet (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ide:wpaper:27049

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