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The New York Times and the Market for Local Newspapers

Lisa George () and Joel Waldfogel ()

American Economic Review, 2006, vol. 96, issue 1, 435-447

Abstract: Recent technological advances have dramatically lowered the cost of transmitting information over large distances. In the late 1990s, the New York Times implemented a national distribution strategy, expanding delivery in over 100 cities. Using cross-sectional and longitudinal data on local newspaper circulation, Times penetration, and local newspapers characteristics, we find that as Times circulation grows in a market, local newspaper circulation declines among college-educated readers. Local newspapers reposition toward local and away from national coverage, raising circulation among individuals without a degree. Availability of national newspapers in local markets changes the relationship between local preferences and local products.

Date: 2006
Note: DOI: 10.1257/000282806776157551
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Handle: RePEc:aea:aecrev:v:96:y:2006:i:1:p:435-447