|
EconStor >
University of Oslo >
Department of Economics, University of Oslo >
Memorandum, Department of Economics, University of Oslo >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/47276
|
| | |
| Title: | | Price coordination in two-sided markets: Competition in the TV industry  |
| Authors: | | Kind, Hans Jarle Nilssen, Tore Sørgard, Lars |
| Issue Date: | | 2010 |
| Series/Report no.: | | Memorandum // Department of Economics, University of Oslo 2010,18 |
| Abstract: | | Under the current market structure in the TV industry advertising prices are typically set by TV channels while viewer prices are set by distributors (e.g., cable operators). The latter implies that the distributors partly internalize the competition between the TV channels, since they take into account the fact that a lower viewer price at one channel will reduce the willingness to pay for rival channels. We find that a shift to a market structure where advertising prices as well as viewer prices are set competitively by the TV channels might increase joint industry profits. The reason is that this market structure, in contrast to the one we observe today, directly addresses the two-sidedness of the market. We also show that this is to the benefit of the viewers. |
| Subjects: | | Two-sided markets advertising media economics |
| JEL: | | L13 L22 L82 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Memorandum, Department of Economics, University of Oslo
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/47276
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|