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Prof. Simon Anderson

University of Virginia, USA

Authors: Simon P. Anderson, Øystein Foros, Hans Jarle Kind, and Martin Peitz

Abstract: Standard media economics models imply that increased platform competition decreases ad levels and that mergers reduce per-viewer ad prices. The empirical evidence, however, is mixed. We attribute the theoretical predictions to the combined assumptions that there is no advertising congestion and that viewers single-home. Allowing for crowding in viewer attention spans for ads may reverse standard results, as does allowing viewers to multi-home.

Full Text:  “Media market concentration, advertising levels, and ad prices”