Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/25936 
Year of Publication: 
2007
Series/Report no.: 
CESifo Working Paper No. 1891
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
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.
JEL: 
D4
D43
H21
H22
L13
Document Type: 
Working Paper
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