Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/69582
Authors: 
Kind, Hans Jarle
Sørgard, Lars
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper: Industrial Organisation 4060
Abstract: 
This paper analyzes market segmentation in a two-sided market that consists of media consumers and advertisers. The analysis is motivated by a European Court of Justice Decision in October 2011, which allowed viewers to take advantage of international price differences and buy access to Premier League TV matches from whichever country they like. We compare complete market segmentation with the new situation where consumers can purchase from abroad (allowing for passive sales). Clearly, such a change is likely to harm Premier League, which at present is sold at different prices to viewers in different countries. More surprisingly, we find that all viewers - including those that switch to purchasing from abroad - might also be harmed. We further show that the two-sidedness of the market may break down in the country that attracts foreign viewers.
Subjects: 
market segmentation
two-sided market
price discrimination
media market
passive sales
JEL: 
D43
K21
L13
Document Type: 
Working Paper

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