January 2016
Beginner
562 pages
21h 17m
English
Content preview from Handbook of Media Economics, vol 1A
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choosing advertising levels and a subscription price (as in Anderson and Coate, 2005)isan
insulated equilibrium. Under some generic conditions, it can be shown to be the unique
insulated equilibrium.
35
This shows that insulated equilibria may have a simple and attractive structure in some
cases. In particular when consumers single-home, it provides some support to the
quantity-setting model as the price-setting game would not yield an insulating
equilibrium.
2.4. MULTI-HOMING VIEWERS/READERS
The models described in the previous section suppose that each media consumer chooses
only one platform. However, advertisers choose to place their ads on multiple channels.
The behavior of the consumers is known as single-homing while that of the advertisers
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