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Another tale of two-sided markets
(Working paper2007:14, Working paper, 2007-06)
This note generalizes the frequently used Hotelling model for two-sided markets. We demonstrate an invariance theorem: advertisement levels neither depend on the media price nor on the location of the media firm. An increase ...
Advertising and Newspaper Differentiation: On the Role of Readers’ Advertising Taste
(Discussion paper2007:4, Working paper, 2007-01)
Newspapers have an incentive to moderate their profile in order to gain a larger readership and thus higher advertising revenue. We show that this incentive is weakened both if readers are ad-haters and if they are ad-lovers.