Estimating Demand with Multi-Homing in Two-Sided Markets

Pauline Affeldt, Elena Argentesi and Lapo Filistrucchi ()

Working Papers - Economics from Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa

Abstract: We empirically investigate the relevance of multi-homing in two-sided markets. First, we build a micro-founded structural econometric model that encompasses demand for differentiated products and allows for multi-homing on both sides of the market. We then use an original dataset on the Italian daily newspaper market that includes information on double-homing by readers to estimate readers’ and advertisers’ demand. The results show that an econometric model that does not allow for multi-homing is likely to produce biased estimates of demand on both sides of the market. In particular, on the reader side, accounting for multi-homing helps to recognize complementarity between products; on the advertising side, it allows to measure to what extent advertising demand depends on the shares of exclusive and overlapping readers.

Keywords: two-sided markets; platforms; multi-homing; media; advertising (search for similar items in EconPapers)
JEL-codes: C51 D43 L13 L82 M37 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2021
New Economics Papers: this item is included in nep-com, nep-ind, nep-isf, nep-pay and nep-reg
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https://www.disei.unifi.it/upload/sub/pubblicazioni/repec/pdf/wp16_2021.pdf (application/pdf)

Related works:
Working Paper: Estimating Demand with Multi-Homing in Two-Sided Markets (2021)
Working Paper: Estimating Demand with Multi-Homing in Two-Sided Markets (2021)
Working Paper: Estimating Demand with Multi-Homing in Two-Sided Markets (2021)
Working Paper: Estimating Demand with Multi-Homing in Two-Sided Markets (2021)
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