Skip to main content

Heterogeneous multi-product competition in Taiwan's newspaper industry

Buy Article:

$53.17 plus tax (Refund Policy)

Abstract:

Taiwan's daily newspaper industry is characterized by multiple products and heterogeneous competition. This article develops a game-theoretic model to analyze the strategic and competitive reaction of the incumbent in the newspaper market to a recent tabloid-like entertainment newspaper entrant and its impact on the industrial structure through a modification of Judd's multi-product competition model (1985), considering the property of heterogeneous competition in the Taiwan newspaper market. The leading incumbent operated newspapers in the general news and entertainment-oriented news segments of the market and our equilibrium analysis shows that closing its entertainment-oriented paper was the optimal response to the competitive entry in the short run. However, when the possibility that the entrant might invest in disruptive innovations in other product segments after entry is considered, the model shows that the incumbent's withdrawal from the entertainment market could induce more severe competition in the general news market and thus hurt its long-term profits. Managerial insights and implications of the analysis are discussed.

Keywords: Apple Daily; Taiwan newspaper industry; game theory; media economics

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/01292980802021822

Affiliations: 1: Department of Economics, National Chengchi University, Taiwan 2: Department of Journalism, National Chengchi University, Taiwan

Publication date: June 1, 2008

routledg/rajc/2008/00000018/00000002/art00003
dcterms_title,dcterms_description,pub_keyword
6
5
20
40
5

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more