Estimating demand with multi-homing in two-sided markets

Arbeitspapier

We empirically investigate the relevance of multi-homing in two-sided markets. First, we build a micro-founded structural econometric model that encompasses demand for differentiated products and allows for multi-homing on both sides of the market. We then use an original dataset on the Italian daily newspaper market that includes information on double-homing by readers to estimate readers' and advertisers' demand. The results show that an econometric model that does not allow for multihoming is likely to produce biased estimates of demand on both sides of the market. In particular, on the reader side, accounting for multi-homing helps to recognize complementarity between products; on the advertising side, it allows to measure to what extent advertising demand depends on the shares of exclusive and overlapping readers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Quaderni - Working Paper DSE ; No. 1165

Classification and Topics

• Classification: Wirtschaft ; Model Construction and Estimation ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Oligopoly and Other Imperfect Markets ; Entertainment; Media ; Advertising
• Subject: two-sided markets ; platforms ; multi-homing ; media ; advertising

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Affeldt, Pauline Luise ; Argentesi, Elena ; Filistrucchi, Lapo
• Event: Veröffentlichung
• (who): Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
• (where): Bologna
• (when): 2021

Further information

• DOI: doi:10.6092/unibo/amsacta/6772
• Handle: http://hdl.handle.net/10419/265166
• Last update: 10.03.2025, 11:43 AM CET