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The Economic Advantage of Being the “Voice of the Majority”

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  • Joana Resende

Abstract

This article analyzes price competition in a duopolistic newspaper industry, where politically differentiated newspapers compete in 2 distinct markets: circulation and advertising. Assuming that 1 of the newspapers represents the “voice of the majority,” the theory of the circulation spiral is investigated and whether the interdependence between newspapers' demands in the circulation and advertising markets favors the majority's newspaper to the detriment of the minority's newspaper is investigated.

Suggested Citation

  • Joana Resende, 2008. "The Economic Advantage of Being the “Voice of the Majority”," Journal of Media Economics, Taylor & Francis Journals, vol. 21(3), pages 158-190.
    • Handle: RePEc:taf:jmedec:v:21:y:2008:i:3:p:158-190
    DOI: 10.1080/08997760802300639
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    References listed on IDEAS

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    1. GABSZEWICZ, Jean & LAUSSEL, Didier & SONNAC, Nathalie, 2002. "Concentration in the press industry and the theory of the "circulation spiral"," LIDAM Discussion Papers CORE 2002064, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Cited by:

    1. Rabah Amir & Igor Evstigneev & Adriana Gama, 2021. "Oligopoly with network effects: firm-specific versus single network," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(3), pages 1203-1230, April.
    2. Armando J. Garcia Pires, 2013. "Media Plurality and the Intensity of Readers' Political Preferences," Journal of Media Economics, Taylor & Francis Journals, vol. 26(1), pages 41-55, March.
    3. Vitor Miguel Ribeiro & João Correia-da-Silva & Joana Resende, 2016. "Nesting Vertical And Horizontal Differentiation In Two-Sided Markets," Bulletin of Economic Research, Wiley Blackwell, vol. 68(S1), pages 133-145, December.
    4. Anderson, Simon & Waldfogel, Joel, 2015. "Preference Externalities in Media Markets," CEPR Discussion Papers 10835, C.E.P.R. Discussion Papers.
    5. Rabah Amir & Jean Gabszewicz & Joana Resende, 2014. "Thematic Clubs and the Supremacy of Network Externalities," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(5), pages 706-729, October.

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