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Wenjiao Che and Toshiki Kodera |
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''Product differentiation and advertising in multiple markets'' |
( 2014, Vol. 34 No.1 ) |
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We study a Hotelling location game where media platforms compete with the same content in two separate markets. The findings show that media platforms may provide less differentiated content if the non-negativity constraint on prices is binding in at least one market. Moreover, content differentiation is decreasing in the size of market where the constraint is binding. |
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Keywords: Two-sided markets, Multiple markets, Product differentiation |
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General L8 - Industry Studies: Services: General |
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Manuscript Received : May 20 2013 | | Manuscript Accepted : Feb 28 2014 |
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