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Ralf Dewenter and Juergen Roesch
 
''Newspaper habit''
( 2011, Vol. 31 No.4 )
 
 
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.
 
 
Keywords:
JEL: L0 - Industrial Organization: General
 
Manuscript Received : Aug 12 2011 Manuscript Accepted : Oct 11 2011

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