Tax-free digital news?

Consumer "multihoming" (watching two TV channels, or buying two news magazines) has surprisingly important effects on market equilibrium and performance in (two-sided) media markets. We show this by introducing consumer multihoming and advertising finance into the classic circle model of product differentiation. When consumers multihome (attend more than one platform), media platforms can charge only incremental value prices to advertisers. Entry or merger leaves consumer prices unchanged under consumer multihoming, but leaves advertiser prices unchanged under singlehoming: Multihoming flips the side of the market on which platforms compete.In contrast to standard circle results, equilibrium product variety can be insufficient under multihoming.

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“…We allow platforms to place ads on their platforms. To analyze two‐sided pricing, we follow Anderson et al () and Foros et al ().…”

Section: A Model Of Multihoming Consumersmentioning

confidence: 99%

“…Foros, Kind, and Wyndham () analogously allow for charging both sides of the market, but they restrict their model to a duopoly market. Foros et al may be considered as an extension of Anderson and Gabszewicz ().…”

mentioning

confidence: 99%

The importance of consumer multihoming (joint purchases) for market performance: Mergers and entry in media markets

Anderson

Foros

Kind

2019

Economics Manag Strategy

Self Cite

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“…First, we show that when we do not allow firms to diversify content, ad-valorem taxes on the selling of news and ad-valorem taxes on the selling of advertisement have different effects on prices. While ad-valorem taxes on selling of news decreases prices (as in Foros et al [16]), ad-valorem taxes on selling of advertising increase prices of newspapers. This difference arises because ad-valorem taxes on selling of news increases price competition.…”

Section: Introductionmentioning

confidence: 95%

“…In turn, many argue that media diversity is essential to democracy and the society (see for instance, Strömberg [1][2][3][4][5]; Sunstein [6,7]; Gentzkow et al [8,9]. 1 Given the importance of newspapers to democracy, some countries offer special tax treatment to the media sector, like reduced VAT rates (see Foros et al [16]; European Commission [17]). The issue of given special tax treatment to the media industry has become even more relevant in the last decades since the inception of the Internet.…”

Section: Introductionmentioning

confidence: 99%

Ad-Valorem Taxes, Prices and Content Diversification in the News Market

Pires

2023

Games

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In this paper, we look at two research questions. First, can lower ad-valorem taxes, on the selling of news and on the selling of advertising, conduce to lower prices in the media sector? Second, can lower ad-valorem taxes stimulate firms to increase the diversity of content that they offer? The purpose of this work is to give tax political guidelines to policy makers for the media sector. This is important for a sector that has seen the reduction in payment subscriptions by readers (due to competition from free news from the Internet), and reduction of advertisement revenues due to competition from media giants like Google and Facebook. With this purpose we build on the Hoteling product competition model, which is the workhorse model in media economics. We show that ad-valorem taxes on the selling of advertising are preferable to ad-valorem taxes on the selling of news because the former conduce to reduction in prices of newspaper. However, both ad-valorem taxes on the selling of news and on the selling of advertisement reduces media diversity, because they reduce revenues that media firms can use to invest in media content.

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“…Taxpayers will find it simpler to report their obligations with the help of digital tax services (Arianto & Pratama, 2021), (Nurlaela, 2017a), and (Stefani, 2018). With the development of digital tax services, it is hoped that taxpayers can full their obligations (Agrawal & Wildasin, 2019), (Foros et al, 2019), and (Mardan & Stimmelmayr, 2017). In addition, tax socialization plays a role in introducing digital tax service mechanisms to the public, so that the public as taxpayers will understand it (Andreas & Savitri, 2015), (Herawati et al, 2018), and (Savitri & Musfialdy, 2016).…”

Section: Introductionmentioning

confidence: 99%

How Digital Tax Socialization Moderates E-Filling Against Individual Taxpayer Compliance

et al. 2023

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This study aims to analyze the effect of using e-filling on individual taxpayer compliance by including the role of digital tax socialization to strengthen the relationship between the two. The new contribution of this research is to combine literature e-filling, digital tax outreach, and individual taxpayer compliance which were previously examined separately. The primary data for this study came from a questionnaire given to 100 individual taxpayers at KPP Pratama Ciamis. Purposive sampling was used to select the sample for this study. The Partial Least Square method and the SmartPLS tool are used to test the research variables. The results of the study show that e-filling has a positive effect on individual taxpayer compliance. The next result is that digital tax socialization is not significant in strengthening the positive effect of e-filling on individual taxpayer compliance. The practical contribution in this study is by finding that digital tax socialization directly has a positive relationship with individual taxpayer compliance. The results of our study support the commitment of various countries to carry out tax reform in a modern direction. Keywords: E-filling; Digital Tax Socialization; Individual Taxpayer Compliance; Tax Authorities

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Tax-free digital news?

Cited by 6 publications

References 15 publications

The importance of consumer multihoming (joint purchases) for market performance: Mergers and entry in media markets

The importance of consumer multihoming (joint purchases) for market performance: Mergers and entry in media markets

Ad-Valorem Taxes, Prices and Content Diversification in the News Market

How Digital Tax Socialization Moderates E-Filling Against Individual Taxpayer Compliance

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