Seminari Weekly

Martin Peitz

University of Mannheim


Seminar 3 – 14:30


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.

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