Does advertising lower the price of newspapers to consumers? A theoretical appraisal

Jaskold Gabszewicz, Jean;Laussel, Didier;Sonnac, Nathalie
(2005) Economics Letters — Vol. 87, n° 1, p. 127-134 (2005)

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Authors
  • Jaskold Gabszewicz, JeanUCLouvain
    Author
  • Laussel, Didier
    Author
  • Sonnac, Nathalie
    Author
Abstract
We study whether advertising subsidizes consumers newspapers' prices. Using a model representing the two-sided network effects between the advertising and printed media industries, we show that the answer should be nuanced according to the readership's attitude toward advertising.
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Jaskold Gabszewicz, J., Laussel, D., & Sonnac, N. (2005). Does advertising lower the price of newspapers to consumers? A theoretical appraisal. Economics Letters, 87(1), 127-134. https://doi.org/10.1016/j.econlet.2004.06.024 (Original work published 2005)