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Media Markets with Habit Formation

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  • Dewenter, Ralf

    (Helmut Schmidt University, Hamburg)

Abstract

The aim of this paper is to analyse the pricing behaviour of print media firms when consumption on reader markets is addictive or habituated. However, not only the reader but also the advertising market has to be considered by a publisher optimising profits. Because print media markets are highly concentrated a monopoly-monopoly model is built, where both markets are of monopolistic structure. Moreover, a monopoly-duopoly model is considered, where only the reader market is monopolistic but the advertising market is of duopolistic structure. To compare the results from the models regarding habit effects, simple static models are presented as a benchmark.

Suggested Citation

  • Dewenter, Ralf, 2003. "Media Markets with Habit Formation," Working Paper 5/2003, Helmut Schmidt University, Hamburg.
    • Handle: RePEc:ris:vhsuwp:2003_005
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    Cited by:

    1. Subhasish M. Chowdhury & Stephen Martin, 2017. "Exclusivity and exclusion on platform Markets," Journal of Economics, Springer, vol. 120(2), pages 95-118, March.
    2. Subhasish M. Chowdhury & Stephen Martin, 2017. "Exclusivity and exclusion on platform Markets," Journal of Economics, Springer, vol. 120(2), pages 95-118, March.

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