Arbeitspapier

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

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.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 1891

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

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

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Kind, Hans Jarle
  • Schjelderup, Guttorm
  • Stähler, Frank
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2007

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