Multihoming and market expansion: Effects on media platforms’ pricing and content creation incentives

C-Tier
Journal: Economics Letters
Year: 2023
Volume: 232
Issue: C

Authors (2)

Dyskeland, Ole Kristian (not in RePEc) Foros, Øystein (Norges Handelshøyskole (NHH))

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Conventional assumptions in the classical linear city of Hotelling, the workhorse model in media economics, are (i) that no consumer buys more than one of the goods (they are singlehomers) and (ii) that the market is covered. We relax both assumptions to analyze how exclusive and non-exclusive content affect pricing and profit for media platforms. In contrast to the outcome in a covered market with consumer multihoming, we show that the consumer price in an uncovered market depends on both exclusive and non-exclusive content. If advertisers have a high willingness to pay for exclusive eyeballs, platforms prefer to provide non-exclusive rather than exclusive content.

Technical Details

RePEc Handle
repec:eee:ecolet:v:232:y:2023:i:c:s016517652300352x
Journal Field
General
Author Count
2
Added to Database
2026-01-25