Arbeitspapier

Price Structure in Two-sided Markets: Evidence from the Magazine Industry?

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 magazines make most of their money from advertisers. Consistent with advertisers valuing readers more than readers value advertisements, our results imply that higher demand or lower costs on the reader side increase ad rates, but that higher demand or lower costs on the advertising side decrease cover prices.

Language
Englisch

Bibliographic citation
Series: ZEW Discussion Papers ; No. 04-80

Classification
Wirtschaft
Subject
Zeitschrift
Markt
Zeitungswerbung
Deutschland

Event
Geistige Schöpfung
(who)
Kaiser, Ulrich
Wright, Julian
Event
Veröffentlichung
(who)
Zentrum für Europäische Wirtschaftsforschung (ZEW)
(where)
Mannheim
(when)
2004

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Kaiser, Ulrich
  • Wright, Julian
  • Zentrum für Europäische Wirtschaftsforschung (ZEW)

Time of origin

  • 2004

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