Abstract:
We consider a model of daily newspapersÕ competition to test the validiity of the so called Òtheory of the circulation spiralÓ. According to it, the interaction between the newspapers and the advertising markets drives the newspaper with the smaller readership into a vicious circle, finally leading it to death. In a model with two newspapers, we show that, contrary to this conjecture, the dynamics envisaged by the proposes of the theory, does not always lead to the elimination of one of them.