Scandinavian Working Papers in Economics

Discussion Papers,
Norwegian School of Economics, Department of Business and Management Science

No 2007/4: Advertising and Newspaper Differentiation: On the Role of Readers’ Advertising Taste

Hans Jarle Kind (), Marko Koethenbuerger () and Guttorm Schjelderup ()
Additional contact information
Hans Jarle Kind: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Marko Koethenbuerger: Center for Economic Studies, Ludwig-Maximilians-Universität, Postal: Ludwig-Maximilians-Universität, Center for Economic Studies, Schackstr. 4, 80539 Munich, Germany
Guttorm Schjelderup: Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Finance and Management Science, Helleveien 30, N-5045 Bergen, Norway

Abstract: 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.

Keywords: Media; Two-sided Markets; Product Differentiation; Hotelling

JEL-codes: D40; D43

6 pages, February 13, 2007

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