@techreport{Crampes2005Advertising,
abstract = {This paper presents a model of media competition with free entry when media operators are
financed both from advertisers and customers. The relation between advertising receipts and
sales receipts, which are both complementary and antagonist, is different if media operators
impose a price or a quantity to advertisers. When consumers dislike advertising, media
operators are better off setting an advertising price than an advertising quantity. We establish
a relationship between the equilibrium levels (advertising and entry) and the advertising
technology. In particular, media operators? profit is not affected by the introduction of
advertising when they impose advertising quantities and when advertising exhibits constant
returns to scale in the audience size. Under constant or increasing returns to scale in the
audience size, we find an excessive level of entry and an insufficient level of advertising.},
author = {Claude Crampes and Carole Haritchabalet and Bruno Jullien},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {L82; L13; 330; media; advertising; free entry; two-sided markets; Werbung; Markteintritt; Werbewirtschaft; Unvollkommener Markt},
language = {eng},
number = {1591},
title = {Advertising, competition and entry in media industries},
type = {CESifo working papers},
url = {http://hdl.handle.net/10419/19055},
year = {2005}
}
