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Media market concentration, advertising levels, and ad prices

Simon Anderson, Øystein Foros, Hans Jarle Kind and Martin Peitz

No 24/2011, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics

Abstract: Standard media economics models imply that increased platform competition decreases ad levels and that mergers reduce per-viewer ad prices. The empirical evidence, however, is mixed. We attribute the theoretical predictions to the combined assumptions that there is no advertising congestion and that viewers single-home. Allowing for crowding in viewer attention spans for ads may reverse standard results, as does allowing viewers to multi-home.

Keywords: Media economics; pricing ads; advertising clutter; information congestion; mergers; entry. (search for similar items in EconPapers)
JEL-codes: D11 D43 L13 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2011-12-15
New Economics Papers: this item is included in nep-com, nep-cul, nep-mkt and nep-ure
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Journal Article: Media market concentration, advertising levels, and ad prices (2012) Downloads
Working Paper: Media Market Concentration, Advertising Levels, and Ad Prices (2011) Downloads
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