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The economic advantage of “being the voice of the majority”

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  • RESENDE, Joana

Abstract

In this paper, we analyze the static interaction in prices between two newspapers that compete with each other in the circulation and in the advertising markets. We exploit the two-sided nature of the newspaper industry to analyze a demand-side effect that generates an endogenous mechanism of concentration in the press industry: "the circulation spiral" effect.

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  • RESENDE, Joana, 2007. "The economic advantage of “being the voice of the majority”," LIDAM Discussion Papers CORE 2007028, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2007028
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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp2007.html
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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 & 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.
    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. 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.
    5. Anderson, Simon & Waldfogel, Joel, 2015. "Preference Externalities in Media Markets," CEPR Discussion Papers 10835, C.E.P.R. Discussion Papers.

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