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Newspapers and advertising : the effects of ad-valorem taxation under duopoly

Kind, Hans Jarle; Schjelderup, Guttorm; Stähler, Frank
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URI
http://hdl.handle.net/11250/163060
Date
2006-12
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  • Discussion papers (SAM) [640]
Abstract
Newspapers are two-sided platforms that sell their product both to readers

and advertisers. Media firms in general, and newspapers in particular,

are considered important providers of information, culture and language in

most countries. Newspapers are therefore given preferential tax treatment.

We show that lower ad valorem taxes lead newspapers to become more differentiated.

Thereby the competitive pressure falls, possibly resulting in higher newspaper prices and reduced quality investments.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
2006:38

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