Product differentiation and advertising in multiple markets

Wenjiao Che () and Toshiki Kodera ()
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Wenjiao Che: Graduate School of Economics, Nagoya University
Toshiki Kodera: Graduate School of Economics, Nagoya University

Economics Bulletin, 2014, vol. 34, issue 1, 400-408

Abstract: We study a Hotelling location game where media platforms compete with the same content in two separate markets. The findings show that media platforms may provide less differentiated content if the non-negativity constraint on prices is binding in at least one market. Moreover, content differentiation is decreasing in the size of market where the constraint is binding.

Keywords: Two-sided markets; Multiple markets; Product differentiation (search for similar items in EconPapers)
JEL-codes: L1 L8 (search for similar items in EconPapers)
Date: 2014-02-28
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