Newspapers and public grants: A matter of quality

Maria Rosa Battaggion and Alessandro Vaglio

Scottish Journal of Political Economy, 2018, vol. 65, issue 1, 27-38

Abstract: The present paper deals with the issue of newspaper subsidies in a framework of endogenous quality provision. We compare monopoly and duopoly cases in a vertically differentiated model. For monopolies we show that a per†copy subsidy reduces quality. Conversely, in duopolies in the vertically differentiated model, we show that a state subsidy might increase the quality of the low†quality newspaper and decrease the quality of the high†quality newspaper.

Date: 2018
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https://doi.org/10.1111/sjpe.12152

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Persistent link: https://EconPapers.repec.org/RePEc:bla:scotjp:v:65:y:2018:i:1:p:27-38

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