Advertising and the rise of the free daily newspapers

Jean Gabszewicz (), Didier Laussel () and Nathalie SONNAC

No 2006087, CORE Discussion Papers from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: We analyze the competition between two newspapers in a vertical differentiation model where the qualities of the journals are determined endogenously in the first stage of the game. We show that when the advertising revenues per reader increase there is a critical value above which the quality of the low quality newspaper discontinuously falls while it becomes similtaneously a free newspaper. This is beneficial to the high quality journal and detrimental to the readers.

Keywords: advertising; newspapers quality (search for similar items in EconPapers)
JEL-codes: L15 L82 (search for similar items in EconPapers)
Date: 2006-10-01
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Working Paper: Advertising and the rise of the free daily newspapers (2006)
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Persistent link: http://EconPapers.repec.org/RePEc:cor:louvco:2006087

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