Permanent URL to this publication: http://dx.doi.org/10.5167/uzh-59696
Wright, Julian; Kaiser, Ulrich (2006). Price Structure in Two-Sided Markets: Evidence from the Magazine Industry. International Journal of Industrial Organization:1-28.
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We present and estimate a model of competition in a two-sided market: the market for magazine readership and advertising. Using data on magazines in Germany, we find evidence that magazines have properties of two-sided markets. The results are consistent with the perception that prices for readers are ‘subsidized’ and that magazines make all their money from advertisers. Consistent with advertisers valuing readers more than readers value advertisements, our results imply that higher demand on the reader side increases ad rates, but that higher demand on the advertising side decreases cover prices.
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|Item Type:||Journal Article, refereed, original work|
|Communities & Collections:||03 Faculty of Economics > Department of Business Administration|
|Dewey Decimal Classification:||330 Economics|
|Deposited On:||26 Jun 2012 16:15|
|Last Modified:||30 Nov 2013 01:56|
|Other Identification Number:||merlin-id:3595|
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