Economics

Hans Jarle Kind, Frank Stähler

Market Shares in Two-Sided Media Industries

Volume 166 () / Issue 2, pp. 205-211 (7)

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This paper generalizes the frequently used Hotelling model for two-sided markets in order to determine the equilibrium market shares. We show that advertisement levels depend neither on the media price nor on the location of the media firm. An increase in advertising revenues does not change the location, but only the media price. If the distribution of consumers is asymmetric, market shares will be asymmetric as well, and the media firm with the larger market share charges the higher media price. The larger firm makes a higher profit per reader and in aggregate than does its smaller rival.
Authors/Editors

Hans Jarle Kind No current data available.

Frank Stähler Geboren 1962; Studium der Volkswirtschaftslehre in Marburg und Münster, 1991 Promotion; 1992–98 wiss. Mitarbeiter am Institut für Weltwirtschaft in Kiel; 1997 Habilitation; seit 1998 Akademischer Rat an der Universität Kiel.