Application of Pricing Theory in Studies of Pricing Behavior and Rate Strategy in the Newspaper Industry

Audience Characteristics and Bundling: A Hedonic Analysis of Magazine Advertising Rates

“…In a magazine with diverse readers, the firm usually acquires not just a single demographic reader segment but a bundle of demographically distinct segments. It is this notion of bundling, namely, a magazine's bundling of demographi-2 Related research includes work by Fisher, McGowan, and Evans (1980) on local television station revenue, Shaver (1995) on newspaper pricing, Kalita and Ducoffe (1995) on the relationship between advertising and circulation revenue for magazines, Goettler (1999) on audience composition and advertising rates for network television, and Silk andBerndt (1993, 1994) on economies of scale and scope for advertising agencies. cally diverse readers, that is central to the following discussion.…”

“…2Related research includes work by Fisher, McGowan, and Evans (1980) on local television station revenue, Shaver (1995) on newspaper pricing, Kalita and Ducoffe (1995) on the relationship between advertising and circulation revenue for magazines, Goettler (1999) on audience composition and advertising rates for network television, and Silk and Berndt (1993, 1994) on economies of scale and scope for advertising agencies.…”