Either or both competition: A "two-sided" theory of advertising with overlapping viewerships
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2016-01-01
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In media markets, consumers spread their attention to several outlets, increasingly so as consumption migrates online. The traditional framework for competition among media outlets rules out this behavior by assumption. We propose a new model that allows consumers to choose multiple outlets and use it to study the effects on advertising levels and the impact of entry and mergers. We identify novel forces which reflect outlets' incentives to control the composition of their customer base. We link consumer preferences and advertising technologies to market outcomes. The model can explain several empirical regularities that are difficult to reconcile with existing models.
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Ambrus, A, E Calvano and M Reisinger (2016). Either or both competition: A "two-sided" theory of advertising with overlapping viewerships. American Economic Journal: Microeconomics, 8(3). pp. 189–222. 10.1257/mic.20150019 Retrieved from https://hdl.handle.net/10161/13157.
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Attila Ambrus
Professor Ambrus’ research focuses on a broad range of subjects including game theory, experimental economics, microeconomic theory, industrial organization, political economics, development economics and economic history. He has received various grants from the National Science Foundation. His most recent work has been published in the American Economic Review, the Quarterly Journal of Economics, Econometrica, and Theoretical Economics.
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