Newspapers and advertising: the effects of ad-valorem taxation under duopoly

Arbeitspapier

Newspapers are two-sided platforms that sell their product both to readers and advertisers. Media firms in general, and newspapers in particular, are considered important providers of information, culture and language in most countries. Newspapers are therefore given preferential tax treatment. We show that lower ad valorem taxes lead newspapers to become more differentiated. Thereby the competitive pressure falls, possibly resulting in higher newspaper prices and reduced quality investments.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 1891

Classification and Topics

• Classification: Wirtschaft ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Taxation and Subsidies: Efficiency; Optimal Taxation ; Taxation and Subsidies: Incidence ; Oligopoly and Other Imperfect Markets
• Subject: Zeitung ; Zeitungswerbung ; Steuerpolitik ; Umsatzsteuer ; Marktstruktur ; Hotelling Modell ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kind, Hans Jarle ; Schjelderup, Guttorm ; Stähler, Frank
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/25936
• Last update: 10.03.2025, 11:42 AM CET