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| Ralf Dewenter and Juergen Roesch |
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| ''Newspaper habit'' |
| ( 2011, Vol. 31 No.4 ) |
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| This note analyzes the impact of habit formation in media markets on
the behavior of a two-sided newspaper platform. Using a simple
dynamic approach we find that habit formation (as well as indirect
network effects) lead to higher quantities and profits. Price
setting, however, strongly depends on network as well as on habit
effects.
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| Keywords: |
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| Manuscript Received : Aug 12 2011 | | Manuscript Accepted : Oct 11 2011 |
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