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Estimating Demand with Multi-Homing in Two-Sided Markets

Author

Listed:
  • Affeldt, P.
  • Argentesi, E.
  • Filistrucchi, Lapo

    (Tilburg University, Center For Economic Research)

Abstract

We empirically investigate the relevance of multi-homing in two-sided markets. First, we build a micro-founded structural econometric model that encompasses demand for differentiated products and allows for multi-homing on both sides of themarket. We then use an original dataset on the Italian daily newspaper market that includes information on double-homing by readers to estimate readers and advertisers demand. The results show that an econometric model that does not allow for multi-homing is likely to produce biased estimates of demand on both sides of the market. In particular, on the reader side, accounting for multi-homing helps to recognize complementarity between products; on the advertising side, it allows to measure to what extent advertising demand depends on the shares of exclusive and overlapping readers.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Affeldt, P. & Argentesi, E. & Filistrucchi, Lapo, 2021. "Estimating Demand with Multi-Homing in Two-Sided Markets," Discussion Paper 2021-025, Tilburg University, Center for Economic Research.
    • Handle: RePEc:tiu:tiucen:1317bf39-d02e-4f61-a34f-e01f6efbefdd
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    More about this item

    Keywords

    two-sided markets; plateforme; multi-homing; media; advertising;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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