EconPapers    
Economics at your fingertips  
 

ADVERTISING, COMPETITION AND ENTRY IN MEDIA INDUSTRIES*

Claude Crampes (), Carole Haritchabalet () and Bruno Jullien ()

Journal of Industrial Economics, 2009, vol. 57, issue 1, 7-31

Abstract: This paper presents a model of media competition with free entry when media platforms are financed both from advertising receipts and customers' subscriptions. We establish a relationship between the equilibrium levels of prices, advertising and entry, the welfare maximizing levels and the advertising technology. Under constant or increasing returns to scale in the audience size, we find an excessive level of entry and an insufficient level of advertising. We then extend the analysis along several dimensions: the price as a strategic variable on the market for advertising, free media platforms and the media quality dimension.

Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/j.1467-6451.2009.00368.x

Related works:
Working Paper: Advertising, Competition and Entry in Media Industries (2006) Downloads
Working Paper: Advertising, Competition and Entry in Media Industries (2005) Downloads
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: https://EconPapers.repec.org/RePEc:bla:jindec:v:57:y:2009:i:1:p:7-31

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-1821

Access Statistics for this article

Journal of Industrial Economics is currently edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven

More articles in Journal of Industrial Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2020-07-08
Handle: RePEc:bla:jindec:v:57:y:2009:i:1:p:7-31