Ownership Consolidation and Product Characteristics: A Study of the US Daily Newspaper Market
AbstractThis paper develops a structural model of newspaper markets to analyze the effects of ownership consolidation, taking into account not only firms' price adjustments but also the adjustments in newspaper characteristics. A new dataset on newspaper prices and characteristics is used to estimate the model. The paper then simulates the effect of a merger in the Minneapolis newspaper market and studies how welfare effects of mergers vary with market characteristics. It finds that ignoring adjustments of product characteristics causes substantial differences in estimated effects of mergers.
CitationFan, Ying. 2013. "Ownership Consolidation and Product Characteristics: A Study of the US Daily Newspaper Market." American Economic Review, 103 (5): 1598-1628. DOI: 10.1257/aer.103.5.1598
- G32 Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- L13 Oligopoly and Other Imperfect Markets
- L82 Entertainment; Media
- M37 Advertising