Newspaper groups: economies of scale, tax laws, and merger incentives
James N. Dertouzos, Kenneth E. Thorpe, Rand Corporation, United States. Small Business Administration
Rand Corporation, 1982 - Business & Economics - 125 pages
This report examines the economic causes of newspaper conglomeration. Once dominated by small, family-owned enterprises, today about 70 percent of all newspaper firms are subsidiaries of larger corporations. Using data obtained by a mail survey of newspaper firms, Sec. II provides a series of empirical tests of the existence of scale economies associated with conglomeration. Section III examines the structure of newspaper input prices. The diffusion of technology in the newspaper industry is the focus of Sec. IV. Section V evaluates the tax motivations for merger and provides an indirect test of their magnitude. Appendix A discusses the changing structure of the newspaper industry; App. B describes the survey of firms and data tabulations; and App. C gives reduced-form descriptions of newspaper operations.
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EMPIRICAL ANALYSIS OF INPUT
TECHNOLOGICAL DIFFUSION IN THE NEWSPAPER INDUSTRY
2 other sections not shown
acquisition addition advantages aggregate circulation annual average capital gains coefficient estimates coefficient on Group computer technology conditional probability conglomeration Cook's distance corporations daily circulation demand for advertising Dertouzos 1978 dichotomous variable equal differences discount rate economies of scale Editor and Publisher efficient empirical results estate tax Estimates and Standard example firm characteristics firms located Gannett group newspapers group ownership Group2 Harte-Hanks households impact income independent newspapers International Yearbook 1980 Knight-Ridder log Circ logistic regression lower marginal cost measure media competition merger activity newspaper chains newspaper circulation newspaper firms newspaper groups newspaper industry newsprint prices output levels ownership structure Pacific papers parameters pecuniary economies percent predicted price-earnings ratios primary market area profits Publisher International Yearbook purchase reduced-form regional regression reported retail revenues Rosse and Dertouzos sample significant Standard Error suggests Table tax incentives tax laws tax liability technological diffusion things equal U.S. total VDT adoption