Anderson, Simon P. Foros, Oystein Kind, Hans Jarle Peitz, Martin
Year of Publication:
CESifo working paper: Industrial Organisation 3677
Standard media economics models imply that increased platform competition decreases ad levels and that mergers reduce per-viewer ad prices. The empirical evidence, however, is mixed. We attribute the theoretical predictions to the combined assumptions that there is no advertising congestion and that viewers single-home. Allowing for crowding in viewer attention spans for ads may reverse standard results, as does allowing viewers to multi-home.
media economics pricing ads advertising clutter information congestion mergers, entry