Optimal Cover Prices and the Effects of Website Provision on Advertising and Magazine Demand
نویسنده
چکیده
I derive and estimate a model for cover price setting in print media markets where actors are faced by two interrelated demand curves: the demand for the print medium and the demand for advertising space. Publicly available data on German women’s magazines observed between 1998 and 2001 are used in the GMM estimation. Main findings are that my estimated marginals cost coincide well with those of industry sources, magazines with a high circulation elasticity of advertising demand price markedly below marginal cost and website provision neither has a significant effect on magazine nor on advertising demand.
منابع مشابه
The effects of website provision on the demand for German women’s magazines
What happens to the demand of the print version if a magazine launches a website? This question is empirically analyzed for the German women's magazine market, a particularly relevant segment of the German magazine market. Static and dynamic nested logit–type demand models are estimated on quarterly panel data covering the period 1996 to 2001. Main findings are that website provision does not h...
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