Cost of the mission of transport and delivery of printed press: theory and evidence

Abstract

In the first part, we examine from a theoretical perspective how the cost of the mission of postal transport and delivery of newspapers should be defined and by which factors it is determined. In particular we show that a crucial ingredient in the determination of this cost is the variation in aggregate demand induced by an increase in the uniform transportation and delivery rate. In the second part, we empirically analyze the French print media market by modeling the existence of a reciprocal effect between the size of the readership and the amount of advertising. For this two-sided platform, we model the impact of the readership on the level of advertising demand and the intensity of advertising on the number of periodicals sold.

Keywords

Reference

Helmuth Cremer, and Catherine Muller-Vibes, “Cost of the mission of transport and delivery of printed press: theory and evidence”, TSE Working Paper, n. 2022-1353, August 2022.