Some authors have recently argued that the high level of concentration in the newspapers industry is due to strategies of vertical product differentiation. This should explain why, while economies of scale have strongly decreased, concentration remains high. However, theoretical models of vertical product differentiation do not appear to be so appropriate in describing this particular industry. First, it is difficult to use only one parameter to measure and evaluate strategies of vertical differentiation carried on by firms; in addition, price structure in the newspapers industry is very different from that obtained in theoretical models of vertical product differentiation. Newspapers are differentiated along several horizontal and vertical dimensions, and in this case theoretical results are not clear. There are other factors which can explain the high level of concentration in this sector, for example the linkage between the market share and advertising revenues, as well as the presence of scale and scope economies. These "traditional" determinants of market structure seem to be still at work.

E' il mercato dei quotidiani "naturalmente" concentrato? Una nota sul dibattito in corso

MANGANI, ANDREA
2000

Abstract

Some authors have recently argued that the high level of concentration in the newspapers industry is due to strategies of vertical product differentiation. This should explain why, while economies of scale have strongly decreased, concentration remains high. However, theoretical models of vertical product differentiation do not appear to be so appropriate in describing this particular industry. First, it is difficult to use only one parameter to measure and evaluate strategies of vertical differentiation carried on by firms; in addition, price structure in the newspapers industry is very different from that obtained in theoretical models of vertical product differentiation. Newspapers are differentiated along several horizontal and vertical dimensions, and in this case theoretical results are not clear. There are other factors which can explain the high level of concentration in this sector, for example the linkage between the market share and advertising revenues, as well as the presence of scale and scope economies. These "traditional" determinants of market structure seem to be still at work.
Mangani, Andrea
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11568/161025
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