We analyse a newspaper market where media …rms compete for advertising as well as for readership. Firms …rst choose the political position of their newspaper, then set cover prices and advertising tari¤s. We build on the duopoly work in two-sided markets of Gabszewicz, Laussel, and Sonnac (2001, 2002) who show that advertising …nancing can lead to minimum political di¤erentiation. We extend the...

We study two types of targeting in this paper, exogenous targeting and endogenous targeting. By exogenous targeting we mean targeting by product preferences: advertising levels and prices geared to specific consumer preferences. Exogenous targeting presumes observability of consumer preferences (or of factors correlated with them). This is the sort of targeting that is much in the news in conte...