New article by Foros and Kind

3 May 2016 12:51

(updated: 7 September 2017 12:32)

New article by Foros and Kind

The article "Competition for advertisers and for viewers in media markets" by Øystein Foros, and Hans Jarle Kind, together with Simon P. Anderson, is forthcoming in the Economic Journal.

The article "Competition for advertisers and for viewers in media markets" by Øystein Foros, and Hans Jarle Kind, together with Simon P. Anderson,is forthcoming in the Economic Journal.

Abstract:

Standard models of advertising-financed media assume consumers patronize a single media platform, precluding effective competition for advertisers. Such competition ensues if consumers multi-home. The principle of incremental pricing implies that multi-homing consumers are less valuable to platforms. Then entry of new platforms decreases ad prices, while a merger increases them, and ad-financed platforms may suffer if a public broadcaster carries ads. Platforms may bias content against multi-homing consumers, especially if consumers highly value overlapping content and/or second impressions have low value.