| 来源类型 | Working Paper
|
| 规范类型 | 报告
|
| DOI | 10.3386/w4826
|
| 来源ID | Working Paper 4826
|
| Costs, Institutional Mobility Barriers, and Market Structure: Advertising Agencies as Multiproduct Firms |
| Alvin J. Silk; Ernst R. Berndt
|
| 发表日期 | 1994-08-01
|
| 出版年 | 1994
|
| 语种 | 英语
|
| 摘要 | What accounts for the diversity and limited concentration that has long characterized the organization of the advertising agency industry? This question is addressed by treating an advertising agency as a multiproduct firm. The firm's product line or service mix is defined in terms of the set of different media categories where an agency places the advertising messages which it creates on behalf of its clients. Evidence is presented indicating that the structure of demand and costs in the advertising agency industry conforms to the conditions that MacDonald and Slivinski (1987) showed were required for an industry to sustain an equilibrium with diversified firms. Building on this framework, we formulate a set of three hypotheses relating to the realization of product-specific scale and scope economies. The first two hypotheses posit that given low fixed costs and minimal entry barriers, both media-specific scale and scope economies are available and can be exploited by relatively small-size agencies. The third hypothesis suggests that large agencies may experience diseconomies of scope as a consequence of excessive diversification induced by two pervasive industry institutional phenomena: (i) 'bundling' of agency services to match client demand for a mix of media advertising; and (ii) 'conflict policy' which prohibits an agency from serving competing accounts and operates as a mobility constraint. Utilizing a multiproduct cost function, we estimate media-specific scale and scope economies for a cross-section of 401 U.S. agencies in 1987. The results obtained support the set of three hypotheses outlined above. |
| 主题 | Industrial Organization
; Market Structure and Firm Performance
; Industry Studies
|
| URL | https://www.nber.org/papers/w4826
|
| 来源智库 | National Bureau of Economic Research (United States)
|
| 引用统计 |
|
| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/562233
|
推荐引用方式
GB/T 7714 |
Alvin J. Silk,Ernst R. Berndt. Costs, Institutional Mobility Barriers, and Market Structure: Advertising Agencies as Multiproduct Firms. 1994.
|
|
文件名：
|
w4826.pdf
|
|
格式：
|
Adobe PDF
|
此文件暂不支持浏览
除非特别说明，本系统中所有内容都受版权保护，并保留所有权利。
