Assessing Unilateral Merger Effects in a Two-Sided Market: An Application to the Dutch Daily Newspaper Market

We compare different methods to assess unilateral merger effects in a two-sided market by applying them to a hypothetical merger in the Dutch newspaper industry. For this, we first specify and estimate a structural model of demand for differentiated products on both the readership and the advertising side of the market. This allows us to recover price elasticities and indirect network effects. Following Filistrucchi, Klein, and Michielsen (2010) marginal costs are then recovered from an oligopoly model of the supply side. We use these estimates of price elasticities, network effects and marginal costs to compare different methods that can be used to evaluate merger effects: We perform a concentration analysis based on the Herfindahl Hirschmann Index, a Small Significant Non-Transitory Increase in Price test, measure Upward Pricing Pressure, and conduct a full merger simulation.Two-sided markets;newspapers;advertising;network effects;merger simulation;SSNIP;UPP;HHI

Faithful Strategies:How Religion Shapes Nonprofit Management

Abstract: This paper studies the strategies employed by Catholic and Protestant nonprofit hospitals in Germany and traces them back to the theological foundations of those religions, which shape managers' values. We find that Catholic nonprofit hospitals follow a strategy of horizontal diversification and maximization of the number of patients treated. By contrast, Protestant hospitals pursue a strategy of horizontal specialization and focus on vertical differentiation, putting in more sophisticated inputs and producing more complex services. The results are consistent with the predictions of our model, which supports the differences between Catholic and Protestant values identified in the literature.

SoundCloud and Bandcamp as alternative music platforms

We examine two ‘producer-oriented’ audio distribution platforms, SoundCloud and Bandcamp, that have been important repositories for the hopes of musicians, commentators and audiences that digital technologies and cultural platforms might promote democratisation of the cultural industries, and we compare their achievements and limitations in this respect. We show that the emancipatory elements enshrined in SoundCloud’s ‘bottom-up’ abundance are compromised by two elements that underpin the platform: the problematic ‘culture of connectivity’ of the social media systems to which it must remain integrally linked, and the systems of intellectual property that the firm has been increasingly compelled to enforce. By contrast, it seems that Bandcamp has been relatively stable in financial terms while being at odds with some key aspects of ‘platformization’, and we explore the possibility that some of the platform’s apparent success may derive from how its key features makes it attractive to indie musicians and fans drawn to an independent ethos. Nevertheless, we argue, even while in some respects Bandcamp acts more effectively as an ‘alternative’ than does SoundCloud, the former is also congruent economically and discursively with how platforms capitalise on the activity of self-managing, self-auditing, specialist, worker-users