Economic incentives to merge

Testimony before the Subcommittee on Select Revenue Measures, Committee on Ways and Means

James N. Dertouzos, Kenneth E. Thorpe

ResearchPublished 1982

Presents key findings of research into the evolving structure of daily newspaper ownership. The industry, once dominated by small, family-owned enterprises, has undergone dramatic changes during the 20th century. In 1910, for example, only 3 percent of all U.S. daily newspapers were members of chains; today about 70 percent are subsidiaries of larger corporations. This research examines the economic causes of this newspaper conglomeration. The authors examine a variety of potential motives to merge: economies of scale, pecuniary advantages stemming from being able to obtain inputs at lower prices, easier adaptation to rapid changes in technology, and tax incentives. No measurable advantages were found in any of these motives save one: tax laws seem to be a primary cause of mergers in the newspaper industry.

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  • Copyright: RAND Corporation
  • Availability: Available
  • Year: 1982
  • Print Format: Paperback
  • Paperback Pages: 9
  • Paperback Price: $20.00
  • DOI: https://doi.org/10.7249/P6771
  • Document Number: P-6771

Citation

RAND Style Manual
Dertouzos, James N. and Kenneth E. Thorpe, Economic incentives to merge: Testimony before the Subcommittee on Select Revenue Measures, Committee on Ways and Means, RAND Corporation, P-6771, 1982. As of September 4, 2024: https://www.rand.org/pubs/papers/P6771.html
Chicago Manual of Style
Dertouzos, James N. and Kenneth E. Thorpe, Economic incentives to merge: Testimony before the Subcommittee on Select Revenue Measures, Committee on Ways and Means. Santa Monica, CA: RAND Corporation, 1982. https://www.rand.org/pubs/papers/P6771.html. Also available in print form.
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