Newspapers and Advertising: The Effects of Ad-Valorem Taxation under Duopoly

Hans Jarle Kind (), Guttorm Schjelderup () and Frank Stähler ()
Additional contact information
Frank Stähler: Dept. of Economics, University of Otago, Postal: University of Otago, Dept. of Economics, PO Box 56, Dunedin, New Zealand

No 2007/5, Discussion Papers from Department of Finance and Management Science, Norwegian School of Economics and Business Administration

Abstract: Newspapers are two-sided platforms that sell their product both to readers and advertisers. Media firms in general, and newspapers in particular, are considered important providers of information, culture and language in most countries. Newspapers are therefore given preferential tax treatment. We show that lower ad valorem taxes lead newspapers to become more differentiated. Thereby the competitive pressure falls, possibly resulting in higher newspaper prices and reduced quality investments.

Keywords: Two-sided markets; ad-valorem taxes (search for similar items in EconPapers)
JEL-codes: D40 D43 H21 H22 L13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-cul, nep-mic, nep-mkt, nep-pbe and nep-pub
Date: 2007-02-13
View list of references

Downloads: (external link)
http://www.nhh.no/for/dp/2007/0507.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Working Paper: Newspapers and Advertising: The Effects of Ad-Valorem Taxation under Duopoly (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:hhs:nhhfms:2007_005

Access Statistics for this paper

More papers in Discussion Papers from Department of Finance and Management Science, Norwegian School of Economics and Business Administration
Address: NHH, Department of Finance and Management Science, Helleveien 30, N-5045 Bergen, Norway
Contact information at EDIRC.
Series data maintained by Stein Fossen ().