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The Effects of Website Provision on the Demand for German Women's Magazines

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  • Ulrich Kaiser

Abstract

The effect of website provision on the demand for German women's magazines is analyzed using differentiated product demand models estimated on panel data that cover the period 1990 2000. Descriptive evidence on the magazines' website contents suggests that websites are used to provide supplementary information and to advertise the current print issue. Website provision does not significantly affect magazines' market shares. This result is robust with respect to the application of alternative econometric approaches to identify the demand model. A counter-factual analysis shows, however, that online magazines would loose around 0.3 per cent in market shares if they went back offline. Likewise, magazines that are currently offline may gain market shares of between 0.07 and 0.37 per cent if they launched a website. Interestingly, some of the potential winners' from going online actually launched a website in 2001.

Suggested Citation

  • Ulrich Kaiser, 2002. "The Effects of Website Provision on the Demand for German Women's Magazines," NBER Working Papers 8806, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:8806
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    Cited by:

    1. Liang, Che-Yuan & Nordin, Mattias, 2012. "The Internet, News Consumption, and Political Attitudes," Working Paper Series 2012:14, Uppsala University, Department of Economics.
    2. Argentesi, Elena & Ivaldi, Marc, 2005. "Market Definition in Printed Media Industry: Theory and Practice," IDEI Working Papers 376, Institut d'Économie Industrielle (IDEI), Toulouse.
    3. Dongook Choi & Yeonbae Kim, 2010. "Effects of Piracy and Digital Rights Management on the Online Music Market in Korea," TEMEP Discussion Papers 201072, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Dec 2010.
    4. Inha Oh & Jeong-Dong Lee & Seogwon Hwang & Almas Heshmati, 2010. "Analysis of product efficiency in the Korean automobile market from a consumer’s perspective," Empirical Economics, Springer, vol. 38(1), pages 119-137, February.
    5. Kaiser, Ulrich, 2002. "Optimal Cover Prices and the Effects of Website Provision on Advertising and Magazine Demand," ZEW Discussion Papers 02-54, ZEW - Leibniz Centre for European Economic Research.
    6. Ralf Dewenter & Ulrich Kaiser, 2005. "Fusionen auf dem Printmedienmarkt aus wirtschaftspolitischer Sicht," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 74(3), pages 51-63.
    7. Kaiser, Ulrich & Wright, Julian, 2006. "Price structure in two-sided markets: Evidence from the magazine industry," International Journal of Industrial Organization, Elsevier, vol. 24(1), pages 1-28, January.
    8. Lapo Filistrucchi, 2005. "The Impact of Internet on the Market for Daily Newspapers in Italy," Economics Working Papers ECO2005/12, European University Institute.
    9. Susanne Kremhelmer & Hans Zenger, 2004. "Advertising and the Media," Industrial Organization 0403003, University Library of Munich, Germany.
    10. Beethika Khan, 2004. "Consumer Adoption of Online Banking: Does Distance Matter?," Development and Comp Systems 0407002, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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