American Economic Review: Vol. 96 No. 1 (March 2006)
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The New York Times and the Market for Local Newspapers
George, Lisa M., and Joel Waldfogel. 2006. "The New York Times and the Market for Local Newspapers." American Economic Review, 96(1): 435-447.
Recent technological advances have dramatically lowered the cost of transmitting information over large distances. In the late 1990s, the New York Times implemented a national distribution strategy, expanding delivery in over 100 cities. Using cross-sectional and longitudinal data on local newspaper circulation, Times penetration, and local newspapers characteristics, we find that as Times circulation grows in a market, local newspaper circulation declines among college-educated readers. Local newspapers reposition toward local and away from national coverage, raising circulation among individuals without a degree. Availability of national newspapers in local markets changes the relationship between local preferences and local products.
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George, Lisa M.