Either or Both Competition: A "Two-sided" Theory of Advertising with Overlapping Viewerships

Attila Ambrus (), Emilio Calvano and Markus Reisinger ()
Additional contact information
Attila Ambrus: Duke University
Markus Reisinger: Otto Beisheim School of Management

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: In media markets, consumers spread their attention to several outlets, increasingly so as consumption migrates online. The traditional framework for studying competition among media outlets rules out this behavior by assumption. We propose a new model that allows consumers to choose multiple outlets and use it to study the effect of strategic interaction on advertising levels, and the impact of entry and mergers. We show that novel forces come into play, which reflect the outlets' incentives to control the composition of the customer base in addition to its size. We link consumer preferences and advertising technologies to market outcomes. The model can explain a number of empirical regularities that are difficult to reconcile with existing models.

Keywords: Media Competition; Two-Sided Markets; Multi-Homing; Viewer Composition; Viewer; Preference Correlation (search for similar items in EconPapers)
JEL-codes: D43 L13 L82 M37 (search for similar items in EconPapers)
Date: 2014-10-18
New Economics Papers: this item is included in nep-com, nep-mic and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Forthcoming in American Economic Journal: Microeconomics

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Related works:
Journal Article: Either or Both Competition: A "Two-Sided" Theory of Advertising with Overlapping Viewerships (2016)
Working Paper: Either or Both Competition: A "Two-Sided" Theory of Advertising with Overlapping Viewerships (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:sef:csefwp:378

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