CEU Electronic Theses and Dissertations, 2018
| Author | Fleck, Dávid Márton |
|---|---|
| Title | Estimating Demand and Market Power in Two-sided Markets: Case of Hungarian Newspaper Industry |
| Summary | I propose a model for estimating demand in two-sided markets where two groups of agents interact through an intermediary platform. The model takes into account the cross-group network effects between the two sides. Based on the estimated demand parameters, platforms’ markup on both sides can be recovered, making it possible to measure market power in two-sided markets. One of the most typical examples for two-sided markets is the newspaper industry, where advertisers and readers interact through newspapers. Using two-stage least squares fixed effect estimation in Hungarian daily newspaper market between 2008 and 2016, I find that readers value advertising, their demand elasticities, however, are relatively low with respect to advertising content as well as to cover price. Estimating advertising side did not provide meaningful results, suggesting that distortions are likely to be present in the Hungarian newspaper advertising market. |
| Supervisor | Kaufmann, Marc |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2018/fleck_david-marton.pdf |
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