Handbook of Media Economics, vol 1A

they reason that, since newspapers in the JOA still need to publish separate editions and

maintain the look and feel of a newspaper in each of its editions, the actual consequence

may be that the two newspapers carry more advertising than a monopolist would. More-

over, since JOAs eventually end at some point, the assets of both newspapers will even-

tually be available for sale. Rather than force the weaker of two newspapers in a JOA to

disappear, it may be rational to have it remain a viable publication, in the hopes that a

future investor will acquire it, and this also requires that this newspaper carry sufficient

advertising. They estimate models of advertising rates for newspapers in 30 large cities

during 1989–1999. They find evidence that