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
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)
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
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:iepoli:v:31:y:2015:i:c:p:59-66
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 ().