Estimating market power in a two-sided market: The case of newspapers

By Elena Argentesi, Lapo Filistrucchi. 2007

250 citations recorded by the source corpus.

The newspaper industry is a two-sided market: the readers market and the advertising market are closely linked by inter-market network externalities. We estimate market power in the Italian newspaper industry by building a structural model which encompasses a demand estimation for differentiated products on both sides of the market and where profit maximization by the publishing firms takes into account the interaction between them. The question that we address is whether the observed price pattern is consistent with profit-maximizing behaviour by competing firms or is instead driven by some form of (tacit or explicit) coordinated practice. Copyright © 2007 John Wiley & Sons, Ltd.

Subfields: Economics and Econometrics, Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/7a23276f9cbc3c4651e7f4288c90def0c68f2175

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Citations in the corpus

Semi-collusion in media markets (2011, background): “Argentesi and Filistrucchi (2007) empirically assess collusion in the market for Italian daily newspapers and find evidence for collusion on copy prices, but no evidence for collusion on advertising rates.5 Secondly, our paper is related to the literature on semi-collusion, where firms compete in…”
Platform Competition: A Systematic and Interdisciplinary Review of the Literature (2020, unknown): “Other contexts that have been frequently studied include newspapers (Argentesi & Filistrucchi, 2007; Seamans & Zhu, 2014, 2017), CD players (Basu, Mazumdar & Raj, 2003; Gandal, Kende, & Rob, 2000), enterprise-resource-planning software (Ceccagnoli, Forman, Huang, & Wu, 2012; Huang, Ceccagnoli,…”
Platformisation (2019, background): “Whereas, for example, newspapers were for a long time successful non-digital two-sided markets attracting readers and advertisers (Argentesi & Filistrucchi, 2007), they are increasingly turned into platform complementors offering content to end-users through platforms, such as Facebook, Twitter,…”
Responses to Entry in Multi-Sided Markets: The Impact of Craigslist on Local Newspapers (2014, background): “Argentesi and Filistrucchi (2007) find a similar pattern in the Italian newspaper industry.”
Competition and antitrust in internet markets (2016, background): “10 Both Argentesi and Filistrucchi (2007) and Filistrucchi et al. (2013) discuss the applicability of the SSNIP-test in two-sided markets and propose to modify the test accordingly.4 In order to measure market power, it is necessary to compute price-cost margins while taking into account the…”