Scandinavian Working Papers in Economics
Memorandum,
Oslo University, Department of Economics
No 25/2011: The Market for Fake Observations
Kjellr Arne Brekke () and Tore Nilsen ()
Additional contact information
Kjellr Arne Brekke: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Tore Nilsen: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Abstract: We show how increased competition in a media market may have implications for the competition between firms that are advertising in that medium. We apply a simple model of a product market with network externalities where firms buy advertising space in a media market and find that there is more entry in the product market, the more competitive the media market is. The paper is the first combining a study of media markets with a behavioral foundation of how advertising a¤ects the demand for the advertised products.
Keywords: Advertising; Media Market; Availability Heuristic; Network Externalities
20 pages, November 4, 2011
Full text files
Memo-25-2011.pdf
- Published as
- Kjell Arne Brekke and Tore Nilssen, (2015), 'Media Competition Enhances New-Product Entry: On the Market for Fake Observations', Information Economics and Policy, vol 31, pages 59-66
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