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Newspapers' market shares and the theory of the circulation spiral

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  • GABSZEWICZ, Jean J.
  • GARELLA, Paolo
  • SONNAC, Nathalie

Abstract

We consider a model of daily newspapers’ competition to test the validity of the so called ”theory of the circulation spiral”. According to it, the interaction between the newspapers and the advertising markets drives the newspaper with the smaller readership into a vicious circle, finally leading it to death. In a model with two newspapers, we show that, contrary to this conjecture, the dynamics envisaged by the proposers of the theory, does not always lead to the elimination of one of them.
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Suggested Citation

  • GABSZEWICZ, Jean J. & GARELLA, Paolo & SONNAC, Nathalie, 2007. "Newspapers' market shares and the theory of the circulation spiral," LIDAM Reprints CORE 1979, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1979
    DOI: 10.1016/j.infoecopol.2007.06.002
    Note: In : Information Economics and Policy, 19, 405-413, 2007
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    1. Jean J. Gabszewicz & Didier Laussel & Nathalie Sonnac, 2003. "Attitudes Toward Advertising and Price Competition in the Press Industry," Contributions to Economic Analysis, in: Economics of Art and Culture Invited Papers at the 12th International Conference of the Association of Cultural Economics International, pages 61-74, Emerald Group Publishing Limited.
    2. Dertouzos, James N & Trautman, William B, 1990. "Economic Effects of Media Concentration: Estimates from a Model of the Newspaper Firm," Journal of Industrial Economics, Wiley Blackwell, vol. 39(1), pages 1-14, September.
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    Cited by:

    1. Marco Antonielli & Lapo Filistrucchi, 2011. "Collusion and the political differentiation of newspapers," Working Papers 11-26, NET Institute, revised Nov 2011.
    2. Lapo Filistrucchi & Damien Geradin & Eric van Damme, 2012. "Identifying Two-Sided Markets," Working Papers - Economics wp2012_01.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    3. Filistrucchi, L. & Gerardin, D. & van Damme, E.E.C. & Keunen, S. & Klein, T.J. & Michielsen, T.O. & Wileur, J., 2010. "Mergers in Two-Sided Markets - A Report to the NMa," Other publications TiSEM f901d1fe-8878-444e-a685-8, Tilburg University, School of Economics and Management.
    4. 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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