The Australian magazine publishing industry is an extremely rivalrous oligopoly, with publishers competing through the constant introduction of new titles, give-aways, editorial content, paper quality, and the use of color, although price competition in the form of direct cutting of cover prices is rare. Magazine cover prices are well-known internationally for their “stickiness”, but subscription sales frequently offer readers a substantial saving over the cover price. This paper investigates the influences of several supply and demand factors on subscription rates, and concludes that there appear to be several systematic influences on subscription savings, including issue frequency, cover price, circulation and size of the publisher.
Review of Industrial Organization – Springer Journals
Published: Sep 29, 2004
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