Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/243194 
Year of Publication: 
2021
Series/Report no.: 
DIW Discussion Papers No. 1965
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
We empirically investigate the relevance of multi-homing in two-sided markets. First, we build a micro-founded structural econometric model that encompasses demand for differentiated products and allows for multi-homing on both sides of the market. We then use an original dataset on the Italian daily newspaper market that includes information on double-homing by readers to estimate readers' and advertisers' demand. The results show that an econometric model that does not allow for multihoming is likely to produce biased estimates of demand on both sides of the market. In particular, on the reader side, accounting for multi-homing helps to recognize complementarity between products; on the advertising side, it allows to measure to what extent advertising demand depends on the shares of exclusive and overlapping readers.
Subjects: 
two-sided markets
platforms
multi-homing
media
advertising
JEL: 
C51
D43
L13
L82
M37
Document Type: 
Working Paper

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