Handbook of Media Economics, vol 1A

In another paper on the US magazine industry, Depken (2004) uses the same data as

Depken and Wilson (2004) to show that both reader income and, in contrast to Koschat

and Putsis (2000a,b)

, age have positive effects on advertising rates.

While these studies use magazine data and readership characteristics data at the

magazine level,

Chandra (2009) uses zip-code level on circulation and readership char-

acteristics for US newspapers. He finds that newspapers that operate in a more compet-

itive environment charge lower cover prices but higher ad rates compared to similar

newspapers that face less competition. To explain his results, Chandra subsequently

shows that newspapers in more competitive markets are better able to segment readers

according to