Merger Simulation in a Two-Sided Market: The Case of the Dutch Daily Newspapers

L. Filistrucchi, T.J. Klein, T.O. Michielsen

Research output: Working paperOther research output


We develop a structural econometric framework that allows us to simulate the effects of mergers among two-sided platforms selling differentiated products. We apply the proposed methodology to the Dutch newspaper industry. Our structural model encompasses demands for differentiated products on both sides of the market and profit maximization by competing oligopolistic publishers who choose subscription and advertising prices, while taking the interactions between the two-sides of the market into account. We measure the sign and size of the indirect network effects between the two sides of the market and simulate the effects of a hypothetical merger on prices and welfare.
Original languageEnglish
PublisherNET Institute
Number of pages43
Publication statusPublished - Sept 2010

Publication series

NameNET Institute Working Paper


  • Two-sided markets
  • newspapers
  • advertising
  • network effects
  • merger simulation
  • SSNIP test


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