Media Economics: Applying Economics to New and Traditional Media differs from ordinary media economic texts by taking a conceptual approach to economic issues. As the book progresses through economic principles, authors Colin Hoskins, Stuart McFadyen, and Adam Finn use cases and examples to demonstrate how these principles can be used to analyze media issues and problems. Media Economics emphasizes economic concepts that have distinct application within media industries, including corporate media strategies and mergers, public policy within media industries, how industry structure and changing technologies affect the conduct and performance of media industries, and why the United States dominates trade in information and entertainment.
Chapter 3: Markets
The demand and supply of goods are affected by variables other than own price. In this chapter, we will examine these other determinants and how changes in their values affect market price. This will provide an understanding of how product markets work and permit us to examine applications to media industries.
After studying this chapter, you should be able to answer the following questions: Why did a decrease in the newsstand price of The Times newspaper affect sales of The Independent? Why did the decrease in the newsstand price affect the rate The Times could charge for advertising? How would we expect a decrease in the price of computers to affect the demand for Internet access? Does the availability of videos and DVDs decrease or ...