Pricing Power in Advertising Markets: Theory and Evidence

• 成果类型: Article
• 署名作者: Gentzkow, Matthew; Shapiro, Jesse m.; Yang, Frank; Yurukoglu, Ali
• 署名单位: Stanford University; National Bureau of Economic Research; Harvard University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20220943
• 发表日期: 2024
• 页码: 500-533
• 关键词: 2-sided markets; empirical-model; television; COMPETITION

摘要

Existing theories of media competition imply that advertisers will pay a lower price in equilibrium to reach consumers who multi -home across competing outlets. We generalize and extend this theoretical result and test it using data from television and social media advertising. We find that the model is a good match, qualitatively and quantitatively, to variation in advertising prices across demographic groups, outlets, platforms, and over time. We use the model to quantify the effects of competition within and across platforms. (JEL G34, K21, L13, L82, M37)