Do media consumers really dislike advertising? An empirical assessment of the role of advertising in print media markets

Kaiser, Ulrich; Song, Minjae

doi:10.1016/j.ijindorg.2008.09.003

Cited by 98 publications

(64 citation statements)

References 21 publications

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“…A practical difficulty with the random coefficients model is, however, that its estimation requires prices (or other characteristics) to vary across different markets. This is theoretically discussed by Nevo (2000) and empirically shown by Kaiser and Song (2009). Our price and characteristics data do not vary across sub-markets, as prices and co-payments are uniform across Denmark, which is why we resort to our nested logit model.…”

Section: Alternative Estimatorsmentioning

confidence: 87%

Regulation of pharmaceutical prices: Evidence from a reference price reform in Denmark

Kaiser

Méndez

Rønde

et al. 2014

Journal of Health Economics

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp10062.pdf Executive summaryThis paper studies the effects of a reference price reform in Denmark on price and demand for statins, products that reduce the blood cholesterol levels. Too high cholesterol levels may cause cardiovascular diseases. Reference pricing is a cost containment tool that is applied to reduce health expenditures in 19 European countries as well as Australia, British Columbia and New Zealand.Our paper is the first to combine price data and demand data to study reform effects. We produce estimates for changes in total government (health care) expenditures, patient expenditures, patient welfare and producer revenues.A main finding is that government and patients did indeed benefit in terms of price declines and declining total expenditures from the reform while producers incurred losses.There are, however, striking differences between products that were "cheap" before the reform and those that were "expensive" before the change. The benefits to patients and the government were primarily due to the initially expensive products. The reform effects were hence quite asymmetrically distributed across products (and thus patients).We also show that an empirical analysis of the reform effects that studies price changes only may lead to quite misleading implications for welfare analysis. On April 1, 2005, Denmark changed the way references prices, a main determinant of reimbursements for pharmaceutical purchases, are calculated. The previous reference prices, which were based on average EU prices, were substituted to minimum domestic prices. Novel to the literature, we estimate the joint effects of this reform on prices and quantities. Prices decreased more than 26 percent due to the reform, which reduced patient and government expenditures by 3.0 percent and 5.6 percent, respectively, and producer revenues by 5.0 percent. The prices of expensive products decreased more than their cheaper counterparts, resulting in large differences in patient benefits from the reform. Das Wichtigste in Kürze JEL-classification: I18, C23

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Section: Alternative Estimatorsmentioning

confidence: 87%

Regulation of pharmaceutical prices: Evidence from a reference price reform in Denmark

Kaiser

Méndez

Rønde

et al. 2014

Journal of Health Economics

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“…47 Bloemveiling Aalsmeer/FloraHolland, at para 29. 48 For instance, while Argentesi and Filistrucchi (2007) and Fan (2010) find no effect of advertising on the number of readers of daily newspapers in Italy and in the US, Kaiser and Wright (2006) and Kaiser and Song (2009) find that advertising increases readers' demand for magazines in Germany. Wilbur(2008) find instead that viewers dislke advertising in the US and so does Jeziorski(2011) for.radio listeners in the US.…”

Section: The Deductive Approachmentioning

confidence: 99%

Identifying Two-Sided Markets

2012

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†We review the burgeoning literature on two-sided markets focusing on the different definitions that have been proposed. In particular, we show that the well-known definition given by Evans is a particular case of the more general definition proposed by Rochet and Tirole. We then identify the crucial elements that make a market two-sided and, drawing from both theory and practice, derive suggestions for the identification of the two-sided nature of a market. Our suggestions are relevant not only for the analysis of traditional two-sided markets, such as newspapers and payment cards, but also for the analysis of many new markets, such as those for online social networks, online search engines and Internet news aggregators. JEL codes: L40, L50, K21

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“…Readers of magazines seem instead to attach a positive value to advertising (which is avoidable and more targeted). See Kaiser and Wright (2006) and Kaiser and Song (2009). 5 See strategies.…”

Section: Introductionmentioning

confidence: 99%

Areeda–Turner in Two-Sided Markets

Behringer

Filistrucchi

2015

Rev Ind Organ

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We extend the Areeda-Turner rule to two-sided markets. We show that a two-sided monopolist may find it short-run profit-maximizing to charge a price below marginal cost on one side of the market. Hence showing that the price is below marginal cost on one side of a two-sided market cannot be considered a sign of predation. We then argue for a two-sided Areeda-Turner rule that takes into account price-cost margins on both sides of the market. Two examples highlight that applying a one-sided Areeda-Turner rule may lead one to assess legitimate prices as predatory or to consider predatory prices as legitimate.

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Do media consumers really dislike advertising? An empirical assessment of the role of advertising in print media markets

Cited by 98 publications

References 21 publications

Regulation of pharmaceutical prices: Evidence from a reference price reform in Denmark

Regulation of pharmaceutical prices: Evidence from a reference price reform in Denmark

Identifying Two-Sided Markets

Areeda–Turner in Two-Sided Markets

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