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PhD ceremony Ms. R.M. van Dalen: Competition in two-sided markets. Tuning in to the Dutch radio broadcasting industry

When:Th 19-09-2013 at 14:30

PhD ceremony: Ms. R.M. van Dalen, 14.30 uur, Academiegebouw, Broerstraat 5, Groningen

Dissertation: Competition in two-sided markets. Tuning in to the Dutch radio broadcasting industry

Promotor(s): prof. R.J.M. Alessie

Faculty: Economics

This thesis gives an in-depth analysis of the Dutch radio broadcasting industry. This industry can be characterized as a two-sided market in which a radio station faces demand from two distinct types of consumers: listeners and advertisers. Radio stations provide content to attract a large audience which in turn attracts potential advertisers.

The network externalities in two-sided markets have important consequences for competition and antitrust issues. Three chapters of this thesis therefore empirically examine antitrust issues. The final chapter contains a theoretical analysis highlighting the importance of the demographic composition of the audience. The research questions that are addressed are the following: Is there business stealing in radio broadcasting? What is the degree of market power in this industry? Are there network effects? Are listeners averse to advertising? What is the effect of a merger on market shares, advertising prices and quantities? How do demographic characteristics of the audience influence market outcomes?