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Does Advertising Lower the Price of Newspapers to Consumers ? A Theoretical Appraisal

Jean Gabszewicz, Didier Laussel () and Nathalie Sonnac

No 2004-40, Working Papers from Center for Research in Economics and Statistics

Abstract: We study whether advertising subsidizes consumers newspapers, prices. Using a model representingthe two-sided network effects between the advertising and printed media industries, we show that theanswer should be nuanced according to the readership,s attitude toward advertising.

Date: 2004
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