Intermedia Substitutability and Market Demand by National Advertisers
We assess substitutable and complementary relationships among eight national advertising media classes, as well as the magnitude of their own-price elasticities. We use a translog demand model, whose parameters we estimate by three-stage least squares, based on 1960-94 annual U.S. data.We find aggregate demand by national advertisers for each of the eight media is own-price inelastic, and that cross-price elasticities suggest slightly more substitute than complementary relationships, although both are rather weak. These patterns are consistent with long prevailing institutional arrangements and media selection practices.
Silk, Alvin J., Lisa R. Klein and Ernst R. Berndt. "Intermedia Substitutability And Market Demand By National Advertisers," Review of Industrial Organization, 2002, v20(4,Jun), 323-348.