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Contribution Details
| Type | Journal Article |
| Scope | Discipline-based scholarship |
| Title | Price Structure in Two-Sided Markets: Evidence from the Magazine Industry |
| Organization Unit | |
| Authors |
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| Item Subtype | Original Work |
| Refereed | Yes |
| Status | Published in final form |
| Language |
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| Journal Title | International Journal of Industrial Organization |
| Publisher | Elsevier |
| Geographical Reach | international |
| ISSN | 0167-7187 |
| Page Range | 1 - 28 |
| Date | 2006 |
| Abstract Text | We present and estimate a model of competition in a two-sided market: the market for magazine readership and advertising. Using data on magazines in Germany, we find evidence that magazines have properties of two-sided markets. The results are consistent with the perception that prices for readers are ‘subsidized’ and that magazines make all their money from advertisers. Consistent with advertisers valuing readers more than readers value advertisements, our results imply that higher demand on the reader side increases ad rates, but that higher demand on the advertising side decreases cover prices. |
| Digital Object Identifier | 10.1016/j.ijindorg.2005.06.002 |
| Other Identification Number | merlin-id:3595 |
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