Advertising and the rise of the free daily newspapers

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

No 2006045, Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques

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 become similtaneously a free newspaper. This is beneficial to the high quality journal and detrimental to the readers.

Keywords: Advertising; Newspaper quality (search for similar items in EconPapers)
JEL-codes: L15 L82 (search for similar items in EconPapers)
Date: 2006-10-15
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Working Paper: Advertising and the rise of the free daily newspapers (2006)
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