Discussion Papers, Department of Finance and Management Science, Norwegian School of Economics (NHH)
No 2007/5:
Newspapers and Advertising: The Effects of Ad-Valorem Taxation under Duopoly
Hans Jarle Kind ()
, Guttorm Schjelderup ()
and Frank Stähler ()
Abstract: Newspapers are two-sided platforms that sell their product
both to readers and advertisers. Media firms in general, and newspapers in
particular, are considered important providers of information, culture and
language in most countries. Newspapers are therefore given preferential tax
treatment. We show that lower ad valorem taxes lead newspapers to become
more differentiated. Thereby the competitive pressure falls, possibly
resulting in higher newspaper prices and reduced quality investments.
Keywords: Two-sided markets; ad-valorem taxes; (follow links to similar papers)
JEL-Codes: D40; D43; H21; H22; L13; (follow links to similar papers)
19 pages, February 13, 2007
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