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Prof. Martin Peitz

University of Mannheim, Germany

Authors: Simon Anderson and Martin Peitz

Abstract: We analyze asymmetric oligopolistic media markets and uncover a see-saw effect. The impacts of market structure changes on the three groups -- advertisers, platforms, and consumers -- are tied together by a simple summary statistic. Changes in the market structure that make the consumer side worse off can make the advertiser side better off. Merger among ad-financed media is consumer-surplus decreasing, but can be advertiser-surplus increasing if ads are a nuisance, while consumers and advertisers suffer from a merger if consumers like ads.

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