What's Fit To Print: The Effect Of Ownership Concentration On Product Variety In Daily Newspaper Markets

Details What's Fit To Print: The Effect Of Ownership Concentration On Product Variety In Daily Newspaper Markets What's Fit To Print: The Effect Of Ownership Concentration On Product Variety In Daily Newspaper Markets

2001-08-22

arxiv.org/abs/cs/0108014v1

Computer Science

Computers and Society

29th TPRC Conference, 2001

Scientific paper

This paper examines the effect of ownership concentration on product position, product variety and readership in markets for daily newspapers. US antitrust policy presumes that mergers reduce the amount and diversity of content available to consumers. However, the effects of consolidation in differentiated product markets cannot be determined solely from theory. Because multi-product firms internalize business stealing, mergers may encourage firms to reposition products, leading to more, not less, variety. Using data on reporter assignments from 1993-1999, results show that differentiation and variety increase with concentration. Moreover, there is evidence that additional variety increases readership, suggesting that concentration benefits consumers.

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