Concentration in advertising-supported online markets: an empirical approach

Author: Goldfarb A.

Source: Economics of Innovation and New Technology, Volume 13, Number 6, September 2004 , pp. 581-594(14)

Publisher: Routledge, part of the Taylor & Francis Group

Abstract:

This paper examines the causes of market concentration in advertising-supported online markets such as sports, news, and email. In particular, it is the first paper to explore the relationship between concentration and product differentiation, economies of scale, market size, advertising, content costs, and multi-market ownership in online markets. As expected, differentiated large markets with low content costs and little multi-market ownership are less concentrated. Furthermore, I show that advertising-supported online markets have much in common with the magazine industry.

Keywords: Internet; Concentration; Market structure

Document Type: Research article

DOI: http://dx.doi.org/10.1080/10438590310001627893

Publication date: 2004-09-01

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