Merger Simulation in a Two-Sided Market: The Case of the Dutch Daily Newspapers
Lapo Filistrucchi (),
Tobias Klein () and
Thomas Michielsen ()
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Thomas Michielsen: CentER, Tilburg University
No 10-15, Working Papers from NET Institute
We develop a structural econometric framework that allows us to simulate the effects of mergers among two-sided platforms selling differentiated products. We apply the proposed methodology to the Dutch newspaper industry. Our structural model encompasses demands for differentiated products on both sides of the market and profit maximization by competing oligopolistic publishers who choose subscription and advertising prices, while taking the interactions between the two-sides of the market into account. We measure the sign and size of the indirect network effects between the two sides of the market and simulate the effects of a hypothetical merger on prices and welfare.
Keywords: two-sided markets; newspapers; advertising; network effects; merger simulation; SSNIP test (search for similar items in EconPapers)
JEL-codes: L13 L40 L82 (search for similar items in EconPapers)
Pages: 42 pages
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Persistent link: https://EconPapers.repec.org/RePEc:net:wpaper:1015
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