Price structure in two-sided markets: Evidence from the magazine industry

Please use this identifier to cite or link to this item: https://doi.org/10.1016/j.ijindorg.2005.06.002

Title:	Price structure in two-sided markets: Evidence from the magazine industry
Authors:	Kaiser, U. Wright, J.
Keywords:	Advertising Magazine markets Two-sided markets
Issue Date:	2006
Citation:	Kaiser, U., Wright, J. (2006). Price structure in two-sided markets: Evidence from the magazine industry. International Journal of Industrial Organization 24 (1) : 1-28. ScholarBank@NUS Repository. https://doi.org/10.1016/j.ijindorg.2005.06.002
Abstract:	We present and estimate a model of competition in a two-sided market: the market for magazine readership and advertising. Using data on magazines in Germany, we find evidence that magazines have properties of two-sided markets. The results are consistent with the perception that prices for readers are 'subsidized' and that magazines make all their money from advertisers. Consistent with advertisers valuing readers more than readers value advertisements, our results imply that higher demand on the reader side increases ad rates, but that higher demand on the advertising side decreases cover prices. © 2005 Elsevier B.V. All rights reserved.
Source Title:	International Journal of Industrial Organization
URI:	http://scholarbank.nus.edu.sg/handle/10635/22302
ISSN:	01677187
DOI:	10.1016/j.ijindorg.2005.06.002
Appears in Collections:	Staff Publications

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