Economics at your fingertips  

Media competition enhances new-product entry: On the market for fake observations

Kjell Arne Brekke and Tore Nilssen ()

Information Economics and Policy, 2015, vol. 31, issue C, 59-66

Abstract: We show how increased competition in a media market may have implications for the competition between firms that are advertising in that medium. We apply a simple model of a product market with network externalities where firms buy advertising space in a media market and find that entry in the product market of a new and superior product is more likely, the more competitive the media market is. The paper is the first combining a study of media markets with a behavioral foundation of how advertising affects the demand for the advertised products.

Keywords: Advertising; Media; Availability heuristic; Network externalities (search for similar items in EconPapers)
JEL-codes: D03 L82 M37 L12 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
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:

DOI: 10.1016/j.infoecopol.2015.03.001

Access Statistics for this article

Information Economics and Policy is currently edited by D. Waterman

More articles in Information Economics and Policy from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-09-22
Handle: RePEc:eee:iepoli:v:31:y:2015:i:c:p:59-66