Fan (2013) and Seamans and Zhu (2014) look at pricing, circulation, and product attributes in a market for newspapers.
For standing by his principles, however, and not engaging in similar practices, Gupta has paid a price: the circulation of the Express has not risen above three hundred thousand in the past decade, and he admits to making only "modest" profits.
To raise your cover price when circulation is on the slide, and during a time of rapidly falling real incomes, can only have one effect – to accelerate the rate of decline.
The company said in its release that it "expects to benefit from its digital subscription initiatives as well as from the print circulation price increase at The New York Times implemented in the first quarter of 2013".
Chandra and Collard-Wexler (2009) examine pricing and circulation in a market for newspapers.
The Wall Street Journal has benefited from the cyclical upturn in advertising, increasing its ad linage almost 23% over the past five years, but that improvement has been eaten up by high newsprint prices, while circulation has remained flat at 1.8 million.
Circulation revenue grew by 10.4 percent, to $952.9 million, mainly from the growth in digital subscriptions and the rise in print circulation prices.
But the company said it still planned to meet its goal of achieving 10 to 15percentt earnings growth this year through circulation price increases and cost reductions.
With costs up and revenue down, circulation price increases are not filling the gap.
