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Characterization of the relevant market in the media industry: some new evidence!

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Listed:
  • Bardey, David
  • Tovar, Jorge
  • Santos, Nicolas

Abstract

In this paper we estimate the degree of substitutability for advertisers across different media outlets. The estimates are motivated by the need that competition agencies have to properly characterize the relevant market when dealing with mergers in the media industry. As technology changes the industry, advertisers may not view a given media outlet as independent from those operating in other media platforms. Indeed, our results show that advertisers see outlets across platforms, either as substitutes or complements. From a policy perspective, our findings imply that competition agencies, particularly when defining relevant markets, should not assume that advertisers operate independently within a single media platform.

Suggested Citation

  • Bardey, David & Tovar, Jorge & Santos, Nicolas, 2016. "Characterization of the relevant market in the media industry: some new evidence!," TSE Working Papers 16-719, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:31125
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    References listed on IDEAS

    as
    1. Seldon, Barry J. & Jewell, R. Todd & O'Brien, Daniel M., 2000. "Media substitution and economies of scale in advertising," International Journal of Industrial Organization, Elsevier, vol. 18(8), pages 1153-1180, December.
    2. Przemys?aw Jeziorski, 2014. "Effects of Mergers in Two-Sided Markets: The US Radio Industry," American Economic Journal: Microeconomics, American Economic Association, vol. 6(4), pages 35-73, November.
    3. Chen Zhen & Eric A. Finkelstein & James M. Nonnemaker & Shawn A. Karns & Jessica E. Todd, 2014. "Predicting the Effects of Sugar-Sweetened Beverage Taxes on Food and Beverage Demand in a Large Demand System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(1), pages 1-25.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Media substitution; Cross Price elasticity; Advertising;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L - Industrial Organization
    • L4 - Industrial Organization - - Antitrust Issues and Policies

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