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Welfare effects of jointly managed non-targeted advertising in multi-sided media markets
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Resumo(s)
We examine the welfare effects of joint advertising by two competing media platforms that attract viewers through subscription pricing while also generating revenue by selling advertisers access to their subscriber base. Focusing on non-targeted advertising, we show that while joint advertising consistently reduces consumer welfare, its overall impact on total welfare remains uncertain. Crucially, this effect depends on the nuisance cost of advertising to consumers, with total welfare potentially increasing when this cost falls within an intermediate range.
Descrição
Funding Information: Centro de Economia e Finanças (CEF.UP) is financed by Portuguese public funds through FCT - Fundação para a Ciência e Tecnologia, I.P. Publisher Copyright: © 2025 The Authors
Palavras-chave
Joint advertising Media Product differentiation Finance Economics and Econometrics