Welfare analysis of media merger from the platforms and two-sided-markets perspective

Abstract

Motivated by the recent trend of market consolidation in China's medium industry, this research aims at analyzing the welfare effect of privatizing the news medium. With the dwindling and gradually withdraw of government subsidy, a wave of merger and acquisition is emerging in the market. This paper builds a model of medium platforms merger and compare the welfare in the situation of monopoly, competition and social optimal.