Discussion Paper Series in Economics, Department of Economics, Norwegian School of Economics (NHH)
Simon P. Anderson
Media market concentration, advertising levels, and ad prices.
(), Řystein Foros
(), Hans Jarle Kind
() and Martin Peitz
Abstract: Standard media economics models imply that increased
platform competition decreases ad levels and that mergers reduce per-viewer
ad prices. The empirical evidence, however, is mixed. We attribute the
theoretical predictions to the combined assumptions that there is no
advertising congestion and that viewers single-home. Allowing for crowding
in viewer attention spans for ads may reverse standard results, as does
allowing viewers to multi-home.
Keywords: Media economics; pricing ads; advertising clutter; information congestion; mergers; entry.; (follow links to similar papers)
JEL-Codes: D11; D43; L13; (follow links to similar papers)
10 pages, December 15, 2011
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