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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/49528
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| Title: | | How effective are advertising bans? On the demand for quality in two-sided media markets  |
| Authors: | | Greiner, Tanja Sahm, Marco |
| Issue Date: | | 2011 |
| Series/Report no.: | | CESifo working paper: Industrial Organisation 3524 |
| Abstract: | | We study a two-sided markets model of two competing television stations that offer content of differentiated quality to ad-averse consumers and advertising space to firms. As all consumers prefer high over low quality content, competition for viewers is vertical. By contrast, competition for advertisers is horizontal, taking into account the firms' targeted advertising motive. We analyze the impact of both the strength of mutual externalities and advertisement regulation policies on the viewers' equilibrium demand for high quality content. We find that, although consumers dislike advertisements, an advertising ban in the high quality medium reduces its viewer market share and thereby the equilibrium reception of high quality content. |
| Subjects: | | horizontal and vertical product differentiation two-sided externalities advertising ban |
| JEL: | | D21 L13 L51 L82 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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