Relation Between Newspaper Subscription Price and Circulation, 1971-1992

Abstract

I explore the effects of newspaper subscription price increases on circulation from 1971 to 1992 for a random sample of daily newspapers. After Pearson product-moment correlation coefficients were computed for circulation and price variables and multiple regression analyses were run, with circulation serving as a dependent variable, pricing serving as an independent variable, and various population and economic measures serving as control variables, the theory of a price-inelastic circulation demand curve was confirmed despite industry beliefs to the contrary.