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S A M F U N N S - O G

N Æ R I N G S L I V S F O R S K N I N G A S I n s t i t u t e f o r R e s e a r c h i n E c o n o m i c s a n d B u s i n e s s A d m i n i s t r a t i o n

Media market concentration,

advertising levels, and ad prices

Simon P. Anderson Øystein Foros

Hans Jarle Kind

Martin Peitz

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Handelshøyskole, Universitetet i Bergen og Stiftelsen SNF er aksjonærer.

Virksomheten drives med basis i egen stab og fagmiljøene ved NHH og Institutt for økonomi (UiB).

SNF er Norges største og tyngste forsk- ningsmiljø innen anvendt økonomisk- administrativ forskning, og har gode samarbeidsrelasjoner til andre forsk- ningsmiljøer i Norge og utlandet. SNF utfører forskning og forskningsbaserte utredninger for sentrale beslutnings- takere i privat og offentlig sektor.

Forskningen organiseres i programmer og prosjekter av langsiktig og mer kortsiktig karakter. Alle publikasjoner er offentlig tilgjengelig.

conduct externally financed research.

The company shareholders are the Norwegian School of Economics and Business Administration (NHH), the University of Bergen (UiB) and the SNF Foundation. Research is carried out by SNF´s own staff as well as faculty members at NHH and the Department of Economics at UiB.

SNF is Norway´s largest and leading research environment within applied economic administrative research. It has excellent working relations with other research environments in Norway as well as abroad. SNF conducts research and prepares research-based reports for major decision-makers both in the private and the public sector. Research is organized in programmes and projects on a long-term as well as a short-term basis. All our publications are publicly available.

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Simon P. Anderson Øystein Foros Hans Jarle Kind

Martin Peitz

SNF project no 1304

”Seamless Infrastructures, Business Models and Cultural Diversity”

THE ECONOMICS OF MEDIA AND TELECOMMUNICATIONS

This report is one of a series of papers and reports published by the Institute for Research in Economics and Business Administration (SNF) as part of its telecommunications and media economics program. The main focus of the research program is to analyze the dynamics of the telecommunications and media sectors, and the connections between technology, products and business models. The project “Seamless Infrastructures, Business Models and Cultural Diversity” is funded by The Research Council of Norway (VERDIKT).

INSTITUTE FOR RESEARCH IN ECONOMICS AND BUSINESS ADMINISTRATION BERGEN

,

JANUARY

2012

ISSN

1503 – 2140

© Materialet er vernet etter åndsverkloven. Uten uttrykkelig samtykke er eksemplarfremstilling som utskrift og annen kopiering bare tillatt når det er hjemlet i lov (kopiering til privat bruk, sitat o.l.) eller avtale med Kopinor (www.kopinor.no)

Utnyttelse i strid med lov eller avtale kan medføre erstatnings- og straffeansvar.

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Simon P. Anderson Media market concentration, advertising levels, Øystein Foros and ad prices

Hans Jarle Kind SNF Working Paper No 02/12 Martin Peitz

Ruth Rørvik Digital musikk for en digital generasjon

En analyse av forretningsmodellene bak Spotify og Wimp SNF Working Paper No 01/12

Leif B. Methlie An analysis of the interplay among the dimensions of the Sven A. Haugland business model and their effects on performance

SNF Working Paper No 35/11

Hans Jarle Kind Newspaper differentiation and investments in journalism:

Guttorm Schjelderup The role of tax policy

Frank Stähler SNF Working Paper No 32/11

Stig Tenold The Bergen wave and the media, 1990-2008 SNF Working Paper No 29/11

Ruth Rørvik Hvordan finansiere journalistikk? – Jakten på bærekraftige forretningsmodeller i en digital mediehverdag

SNF Working Paper No 28/11

Jesper Hatletveit Mergers in two-sided media markets: Pricing and welfare Ole-Jakob S. Lillestøl implications

SNF Working Paper No 24/11

Marius Hagen Drivkreftene bak opplagsutviklingen til en landsdekkende norsk Øyvind Nøstdal tabloidavis. En økonometrisk tidsserieanalyse av Verdens Gang

fra 1978 til 2009

SNF Working Paper No 23/11 Hans Jarle Kind Indirekte pressestøtte: Momsfritak vs

Jarle Møen skattefradrag

SNF Working Paper No 21/11

Armando J. Garcia Pires Advertising, news customization and media pluralism SNF Working Paper No 54/10

Armando J. Garcia Pires Media plurality, news customization and the intensity of readers’ political preferences

SNF Working Paper No 53/10

Jarle Møen Samfunnsøkonomiske perspektiver på pressestøtten

SNF Working Paper No 49/10

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Øystein Foros Do advertisers or viewers decide TV channels’

Hans Jarle Kind programming choice?

Guttorm Schjelderup SNF Working Paper No 43/10

Kenneth Fjell The economics of social networks: The winner takes Øystein Foros it all?

Frode Steen SNF Working Paper No 42/10

Stine Grønnerud Huseklepp WiMP – Styring av verdinnettverk og digitale Ole-Jon Norgård Lund forretningsmodeller – en casestudie

Ådne Cappelen Evaluation of the Norwegian R&D tax credit scheme Erik Fjærli SNF Working Paper No 36/10

Frank Foyn

Torbjørn Hægeland Jarle Møen

Arvid Raknerud Marina Rybalka

Tor Jakob Klette R&D investment responses to R&D subsidies: A theoretical Jarle Møen analysis and a microeconomic study

SNF Working Paper No 33/10

Ørjan Robstad Optimal merverdibeskatning av mediemarkeder: En tosidig

Øyvind Hagen analyse

SNF Working Paper No 32/10

Håkon Eika Velferdsimplikasjoner av restrukturering i TV-markedet Linda Solheimsnes SNF Working Paper No 22/10

Simon P. Anderson Hotelling competition with multi-purchasing: Time Magazine, Øystein Foros Newsweek, or both?

Hans Jarle Kind SNF Working Paper No 21/10

Hans Jarle Kind Price coordination in two-sided markets: Competition in the TV

Tore Nilssen industry

Lars Sørgard SNF Working Paper No 20/10

Leif B. Methlie The drivers of services on next generation networks

Jon Iden SNF Report No 09/10

Per E. Pedersen An empirical study of variety and bundling effects on choice and Herbjørn Nysveen Satisfaction: New telecommunication and media services

SNF Report No 03/10

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Armando J. Garcia Media Bias, News Customization and Competition

Pires SNF Working Paper No 14/10

Armando J. Garcia Media Bias and News Customization

Pires SNF Working Paper No 13/10

Øystein Foros Mergers and partial ownership Hans Jarle Kind SNF Working Paper No 12/10 Greg Shaffer

Johann Roppen Markedsfinansiering og privatisering av allmennkringkasting SNF Working Paper No 11/10

Peder Dalbæk Bruknapp Det norske TV-markedet – Hvorfor tilbyr distributørene

Anne Marthe Harstad kanalpakker, og vil sluttbrukerpris påvirkes av distributørenes kostnadsendringer ved overgang til enkeltkanalvalg?

SNF Working Paper No 42/09

Kenneth Fjell Online advertising: Pay-per-view versus pay-per-click with market power

SNF Working Paper No 32/09

Jonas Andersson A simple improvement of the IV estimator for the classical Jarle Møen errors-in-variables problem

SNF Working Paper No 29/09

Øystein Foros Entry may increase network providers’ profit Hans Jarle Kind Telecommunications Policy 33 (2009) 486-494 Merete Fiskvik Berg Gjeldsfinansiering av immateriell investeringer Marit Bjugstad SNF Working Paper No 26/09

Hans Jarle Kind Tax responses in platform industries Marko Koethenbuerger SNF Working Paper No 24/09

Guttorm Schjelderup Oxford Economic Papers 62 (2010): 764-783 Øystein Foros Slotting Allowances and Manufacturers’ Retail Hans Jarle Kind Sales Effort

Jan Yngve Sand Southern Economic Journal, Vol. 76(1) 266-282

Jon Iden Identifying and ranking next generation network services Leif B. Methlie SNF Report No 12/09

Kjetil Andersson Network competition: Empirical evidence on mobile termination Bjørn Hansen rates and profitability

SNF Working Paper No 09/09

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Terje Ambjørnsen Customer Ignorance, price cap regulation and rent-seeking in Øystein Foros mobile roaming

Ole-Chr. B. Wasenden SNF Working Paper No 05/09

Hans Jarle Kind Market shares in two-sided media industries Frank Stähler SNF Working Paper No 04/09

Journal of Institutional and Theoretical Economics 166 (2010) 205-211

Hans Jarle Kind Should utility-reducing media advertising be taxed?

Marko Koethenbuerger SNF Working Paper No 03/09 Guttorm Schjelderup

Morten Danielsen Muligheter og utfordringer i fremtidens rubrikkmarked Magnus Frøysok på Internett

SNF Working Paper No 02/09

Johanne R. Lerbrekk Markedssvikt i TV-markedet og behovet for offentlige kanaler - sett i lys av digitaliseringen av bakkenettet

SNF Working Paper No 01/09

Tore Nilssen The Television Industry as a market of attention SNF Arbeidsnotat 39/08

Nordicom Review 31 (2010) 1, 115-123

Per E. Pedersen The effects of variety and bundling on choice and satisfaction:

Herbjørn Nysveen Applications to new telecommunication and media services SNF Working Paper No 33/08

Øystein Foros The interplay between competition and co-operation: Market Bjørn Hansen players’ incentives to create seamless networks

SNF Working Paper No 22/08

Per E. Pedersen An exploratory study of business model design and customer Leif B. Methlie value in heterogeneous network services

Herbjørn Nysveeen SNF Report No 09/08, Bergen

Hans Jarle Kind Business models for media firms: Does competition matter for Tore Nilssen how they raise revenue?

Lars Sørgard SNF Working Paper No 21/08, Bergen Marketing Science, Vol. 28, No. 6, November-December 2009, 1112-1128

Helge Godø Structural conditions for business model design in new Anders Henten information and communication services – A case study of

multi-play and MVolP in Denmark and Norway

SNF Working Paper No 16/08, Bergen

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Economics Letters, Vol. 104 (2009) 86-88

Øystein Foros Price-dependent profit-shifting as a channel coordination

Kåre P. Hagen device

Hans Jarle Kind SNF Working Paper No 05/08, Bergen

Management Science, Vol. 8, August 2009, 1280-1291 Hans Jarle Kind Efficiency enhancing taxation in two-sided markets Marko Koethenbuerger SNF Working Paper No 01/08, Bergen

Guttorm Schjelderup Journal of Public Economics 92(2008) 1531-1539

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S A M F U N N S - O G

N Æ R I N G S L I V S F O R S K N I N G A S I n s t i t u t e f o r R e s e a r c h i n E c o n o m i c s a n d B u s i n e s s A d m i n i s t r a t i o n

Breiviksveien 40 N-5045 Bergen Norway

Phone: (+47) 55 95 95 00 Fax: (+47) 55 95 94 39 E-mail: [email protected] Internet: http://www.snf.no/

Trykk: Allkopi Bergen

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