January 2016
Beginner
562 pages
21h 17m
English
Content preview from Handbook of Media Economics, vol 1A
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The model with two firms delivers two key results. First, we see an across-group pref-
erence externality: having more W-type consumers delivers such consumers better
choices in the aggregate but makes the others worse off. Second, merger tends to spread
the two products apart. Adding more firms to the linear depiction of preferences rapidly
encumbers the structure, so we eschew further development of this model in order to
elaborate more subtle and intricate patterns of preference structures (albeit with signifi-
cant simplifications).
1.3.3 Market Size and Equilibrium Media Diversity
Above we considered product positioning, consumption, and the
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