Title: The effects of mergers on product positioning: evidence from the music radio industry
Abstract: The RAND Journal of EconomicsVolume 41, Issue 2 p. 372-397 The effects of mergers on product positioning: evidence from the music radio industry Andrew Sweeting, Andrew Sweeting Duke University and NBER; [email protected] for more papers by this author Andrew Sweeting, Andrew Sweeting Duke University and NBER; [email protected] for more papers by this author First published: 03 May 2010 https://doi.org/10.1111/j.1756-2171.2010.00104.xCitations: 99 This article is a revised version of Chapter 3 of my MIT PhD thesis. I thank Glenn Ellison, Paul Joskow, Jerry Hausman, Whitney Newey, Nancy Rose, Aviv Nevo, Igal Hendel, Jimmy Roberts, Tom Hubbard, Brent Goldfarb, Greg Crawford, Rob Porter, Simon Anderson, Alan Sorenson, Charles Romeo, Joel Waldfogel, Stephen Coate, two anonymous referees, and seminar participants at several schools, the 2005 NBER Summer Institute, and the FTC for useful comments. Stephen Finger, Daniel Szoke, and Jake Zahniser-Word provided excellent research assistance. This article has had a number of previous titles, including "Too Much Rock and Roll? Station Ownership, Programming and Listenership." I thank Rich Meyer of Mediabase 24/7 for providing access to the airplay data and the National Association of Broadcasters (NAB) for funding the purchase of BIAfn's Media Access Pro database. All views and any errors in this article are my own. Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Abstract This article shows that mergers between close competitors in the music radio industry lead to important changes in product positioning. Firms that buy competing stations tend to differentiate them and, consistent with the firm wanting to reduce audience cannibalization, their combined audience increases. However, the merging stations also become more like competitors, so that aggregate variety does not increase, and the gains in market share come at the expense of other stations in the same format. The results shed light on the effects of mergers and, more broadly, on how multiproduct firms may use product positioning as a competitive tool. Citing Literature Volume41, Issue2Summer 2010Pages 372-397 RelatedInformation
Publication Year: 2010
Publication Date: 2010-05-04
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 165
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