Weekly Seminar

Martin Peitz

University of Mannheim

22-Mar-2013

Seminar 3 – 14:30

Abstract

We introduce advertising congestion into media economics. Media platforms grant advertisers access to the viewers’ limited amount of attention for ads. Our framework allows for clear-cut cross-section and comparative statics predictions. In particular, mergers lead to less advertising and higher ad prices, while entry of media platforms does the opposite. Our predictions are in line with recent empirical evidence.

Leave Comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

clear formSubmit