Newspaper habit

Ralf Dewenter and Juergen Roesch ()
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Juergen Roesch: University of Duesseldorf

Economics Bulletin, 2011, vol. 31, issue 4, 2884-2889

Abstract: This note analyzes the impact of habit formation in media markets on the behavior of a two-sided newspaper platform. Using a simple dynamic approach we find that habit formation (as well as indirect network effects) lead to higher quantities and profits. Price setting, however, strongly depends on network as well as on habit effects.

JEL-codes: L0 (search for similar items in EconPapers)
Date: 2011-10-11
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