{"id":270,"date":"2017-05-26T12:45:55","date_gmt":"2017-05-26T16:45:55","guid":{"rendered":"https:\/\/sites.bu.edu\/tpri\/?p=270"},"modified":"2017-05-26T12:45:55","modified_gmt":"2017-05-26T16:45:55","slug":"responses-to-entry-in-multi-sided-markets-the-impact-of-craigslist-on-local-newspapers","status":"publish","type":"post","link":"https:\/\/sites.bu.edu\/tpri\/2017\/05\/26\/responses-to-entry-in-multi-sided-markets-the-impact-of-craigslist-on-local-newspapers\/","title":{"rendered":"Responses to Entry in Multi-Sided Markets: The Impact of Craigslist on Local Newspapers"},"content":{"rendered":"<h4>With Feng Zhu<\/h4>\n<p><a href=\"http:\/\/pubsonline.informs.org\/doi\/abs\/10.1287\/mnsc.2013.1785\" target=\"_blank\">http:\/\/pubsonline.informs.org\/doi\/abs\/10.1287\/mnsc.2013.1785<\/a><\/p>\n<p>How do firms respond to entry in multi-sided markets? We address this question by studying the impact of Craigslist, a website providing classified-advertising services, on local U.S. newspapers. We exploit temporal and geographical variation in Craigslist&#8217;s entry to show that newspapers with greater reliance on classified-ad revenue experience a larger drop in classified-ad rates after Craigslist&#8217;s entry. The impact of Craigslist&#8217;s entry on the classified-ad side appears to propagate to other sides of the newspapers&#8217; market. On the subscriber side, these newspapers experience an increase in subscription prices, a decrease in circulation, and an increase in differentiation from each other. On the display-ad side, affected newspapers experience a decrease in display-ad rates. We also find evidence that affected newspapers are less likely to make their content available online. Finally, we estimate that Craigslist&#8217;s entry leads to $5.0 billion (year 2000 dollars) in savings to classified-ad buyers during 2000\u20132007.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Robert Seamans<\/p>\n","protected":false},"author":6977,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[30,31],"_links":{"self":[{"href":"https:\/\/sites.bu.edu\/tpri\/wp-json\/wp\/v2\/posts\/270"}],"collection":[{"href":"https:\/\/sites.bu.edu\/tpri\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sites.bu.edu\/tpri\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sites.bu.edu\/tpri\/wp-json\/wp\/v2\/users\/6977"}],"replies":[{"embeddable":true,"href":"https:\/\/sites.bu.edu\/tpri\/wp-json\/wp\/v2\/comments?post=270"}],"version-history":[{"count":1,"href":"https:\/\/sites.bu.edu\/tpri\/wp-json\/wp\/v2\/posts\/270\/revisions"}],"predecessor-version":[{"id":271,"href":"https:\/\/sites.bu.edu\/tpri\/wp-json\/wp\/v2\/posts\/270\/revisions\/271"}],"wp:attachment":[{"href":"https:\/\/sites.bu.edu\/tpri\/wp-json\/wp\/v2\/media?parent=270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sites.bu.edu\/tpri\/wp-json\/wp\/v2\/categories?post=270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sites.bu.edu\/tpri\/wp-json\/wp\/v2\/tags?post=270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}