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Media market concentration, advertising levels, and ad prices

Anderson, Simon P.; Foros, Øystein; Kind, Hans Jarle; Peitz, Martin
Working paper
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URI
http://hdl.handle.net/11250/163376
Date
2011-12
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  • Discussion papers (SAM) [676]
Abstract
Standard media economics models imply that increased platform com-

petition decreases ad levels and that mergers reduce per-viewer ad prices.

The empirical evidence, however, is mixed. We attribute the theoretical

predictions to the combined assumptions that there is no advertising con-

gestion and that viewers single-home. Allowing for crowding in viewer

attention spans for ads may reverse standard results, as does allowing

viewers to multi-home.
Publisher
Norwegian School of Economics, Department of Economics
Series
Discussion Papers;24/2011

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