Sobbrio, Francesco (2011): A Citizen-Editors Model of News Media.
This is the latest version of this item.
Download (550kB) | Preview
This paper provides a model of the market for news where profit-maximizing media outlets choose their editors from a population of rational citizens. The analysis identifies a key novel mechanism of media bias: the bias in a media outlet's news reports may be the result of the slanted endogenous information acquisition strategy of its editor. Accordingly, the results show that citizens find it optimal to acquire information from a media outlet whose editor has similar ideological preferences. At the same time, there is always an upper bound on the possible "extremism" of an editor above which the citizens' demand for news is strictly decreasing. Depending on the distribution of citizens' ideological preferences, a media outlet may choose an ideological editor even in a monopolistic market. Moreover, ideological editors are more likely to be present in the market for news: i) the higher the number of media outlets competing in the market for news; ii) the lower the opportunity cost that citizens have to incur to acquire information.
|Item Type:||MPRA Paper|
|Original Title:||A Citizen-Editors Model of News Media|
|Keywords:||Media Bias; Slant; Information Acquisition; Valence; Competition|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness
|Depositing User:||Francesco Sobbrio|
|Date Deposited:||02. Mar 2012 13:55|
|Last Modified:||13. Feb 2013 16:50|
Alterman, E. 2003. What liberal media? The truth about bias and the news. New York: Basic Books.
Anderson, S., P., and McLaren, J. 2010. "Media Mergers and Media Bias with Rational Consumers." Journal of the European Economic Association, forthcoming.
Aragones E., and Palfrey T., R. 2002. "Mixed Equilibrium in a Downsian Model with a Favored Candidate." Journal of Economic Theory, 103: 131-161.
Bagdikian, B. H. 2004. The new media monopoly. Boston: Beacon Press.
Baron, D., P. 2006. "Persistent Media Bias." Journal of Public Economics, 90(1): 1-36.
Besley, T., and Coate, S. 1997. "An Economic Model of Representative Democracy." The Quarterly Journal of Economics, 112(1): 85-114.
Besley T., and Prat A. 2006. "Handcuffs for the grabbing hand? Media capture and government accountability." American Economic Review, 96(3): 720-736.
Blasco, A., Pin, P., and Sobbrio, F. 2011. "Paying Positive to Go Negative: Advertisers' Competition and Media Reports." Working Paper DSE 772, University of Bologna.
Brocas, I. and Carrillo, J., D. 2007. "Influence through Ignorance." RAND Journal of Economics, 38(4): 931--947.
Brocas, I. and Carrillo, J., D. 2009. "Information acquisition and choice under uncertainty." Journal of Economics and Management Strategy, 18(2): 423-455.
Brocas, I., Carrillo, J., D. and Palfrey, T., R. 2011. "Information Gatekeepers: Theory and Experimental Evidence." Economic Theory, forthcoming.
Calvert, R. L. 1985. "The Value of Information: A Rational Choice Model of Political Advice." Journal of Politics, 47: 530--55.
Chan, J., and Suen, W. 2008. "A Spatial Theory of News Consumption and Electoral Competition." The Review of Economic Studies, 75(3): 699-728.
Chiang, C., F., and Knight, B., G. 2011. "Media Bias and Influence: Evidence from Newspaper Endorsements." The Review of Economic Studies, 78(3): 795-820.
Cukierman, A., and Tommasi, M. 1998. "When Does it Take a Nixon to Go to China?" American Economic Review, 88(1): 180-197.
Dasgupta, P. and Maskin, E. 1986. "The Existence of Equilibrium in Discontinuous Economic Games II: Applications." The Review of Economic Studies, 53(1): 27-41.
Davies, N. 2008. Flat Earth News. London: Vintage.
DellaVigna, S. and Gentzkow, G. 2010. "Persuasion: Empirical Evidence." Annual Review of Economics, 2: 643--69.
DellaVigna, S. and Kaplan, E. 2007. "The Fox News Effect: Media Bias and Voting." The Quarterly Journal of Economics, 122(3): 1187-1234.
Djankov S., McLiesh C., Nenova T., and Shleifer A. 2003. "Who Owns The Media?" Journal of Law and Economics, 46: 341-382.
Duggan, J., and Martinelli, C. 2010. "A Spatial Theory of Media Slant and Voter Choice." The Review of Economic Studies, 78(2): 640-666.
Durante R. and Knight B. 2010. "Partisan Control, Media Bias, and Viewer Responses: Evidence from Berlusconi's Italy." Journal of European Economic Association, forthcoming.
Ellman, M. and Germano, F. 2009. "What do the Papers Sell? A Model of Advertising and Media Bias." Economic Journal, 119: 680-704.
Eisensee, T., and Strömberg, D. 2007. "News Floods, News Droughts, and U.S. Disaster Relief." Quarterly Journal of Economics, 122(2).
Enikolopov, R., Petrova, M., and Zhuravskaya, E. 2011. "Media and Political Persuasion: Evidence from Russia." American Economic Review, 101(7): 3253--85.
Gentzkow, M. 2006. Television and voter turnout. Quarterly Journal of Economics 121(3), 931-972.
Gentzkow M., and Shapiro J. 2006., "Media Bias and Reputation." Journal of Political Economy, 114(2): 280-316.
Gentzkow M., and Shapiro J. 2010., "What Drives Media Slant? Evidence from U.S. Daily Newspapers.", Econometrica, 78(1): 35-71.
Gentzkow M., and Shapiro J. 2011., "Ideological Segregation Online and Offline." The Quarterly Journal of Economics, 126 (4): 1799-1839.
Gerber, A., Karlan, D., S. and Bergan, D. 2009. "Does the Media Matter? A Field Experiment Measuring the Effect of Newspapers on Voting Behavior and Political Opinions." American Economic Journal: Applied Economics, 1(2): 35-52.
Germano, F., and Meier, M. 2010. "Concentration and self-censorship in commercial media." Working Paper 1256, Universitat Pompeu Fabra.
Goldberg, B. 2002. Bias: A CBS insider exposes how the media distort the news. Washington, DC: Regency Publishing, Inc.
Groseclose, T. and Milyo, J. 2005. "A Measure of Media Bias." The Quarterly Journal of Economics, 120(4): 1191-1237.
Ho, D. E., and Quinn, K. M. 2008. "Measuring Explicit Political Positions of Media." Quarterly Journal of Political Science, 3: 353--377.
Kamenica, E., and Gentzkow, M. 2011. "Bayesian Persuasion." American Economic Review, 101: 2590--2615.
Larcinese, V., Puglisi, R., and Snyder, Jr., J. M. 2011. "Partisan bias in economic news: Evidence on the agenda-setting behavior of U.S. newspapers." Journal of Public Economics, 95(9-10): 1178-1189.
Li, H., and Suen, W. 2004. "Delegating Decisions to Experts." Journal of Political Economy, 112(1): 311-335.
Mullainathan S., and Shleifer A. 2005. "The Market for News." American Economic Review, 95(4): 1031-1053.
Oberholzer-Gee, F. and Waldfogel, J. 2009. "Media markets and localism: Does local news en Español boost Hispanic voter turnout?" American Economic Review, 99(5): 2120--28.
Osborne M., J., and Slivinsky A. 1996. "A Model of Political Competition with Citizen-Candidates." The Quarterly Journal of Economics, 111(1): 65-96.
Petrova, M. 2011. "Mass Media and Special Interest Groups." Working paper, New Economic School.
Piolatto, A., and Schuett, F. 2011. "Ethical voters and the demand for political news." Working paper, Barcelona Institute of Economics (IEB) and Tilburg University.
Prat, A., and Strömberg, D. 2011. "The Political Economy of Mass Media." Working paper, LSE and IIES.
Puglisi, R. 2011. "Being The New York Times: the Political Behaviour of a Newspaper." The B.E. Journal of Economic Analysis & Policy, 11(1): Article 20.
Puglisi, R. and Snyder, Jr., J. M. 2011. "The Balanced U.S. Press." NBER Working Papers 17263, National Bureau of Economic Research.
Shiryaev, A., N. 2007. Optimal Stopping Rules, Springer, Berlin.
Snyder, J., and Strömberg, D. 2010. "Press Coverage and Political Accountability." Journal of Political Economy, 118 (2).
Sobbrio, F. 2011. "Indirect Lobbying and Media Bias." Quarterly Journal of Political Science, 6(3-4): 235-274.
Strömberg, D. 2004a. "Radio's Impact on Public Spending." Quarterly Journal of Economics, 119(1): 189---221.
Strömberg, D. 2004b. "Mass Media Competition, Political Competition, and Public Policy." The Review of Economic Studies, 71(1): 265-284.
Suen, W. 2004. "The Self-Perpetuation of Biased Beliefs." The Economic Journal, 114: 337-396.
Sunstein, C., R. 2007. Republic.com 2.0. Princeton (NJ): Princeton University Press.
Available Versions of this Item
A Citizens-Editors Model of News Media. (deposited 31. Oct 2009 15:38)
A Citizen-Editors Model of News Media. (deposited 15. Apr 2011 14:46)
A Citizen-Editors Model of News Media. (deposited 22. May 2011 23:14)
- A Citizen-Editors Model of News Media. (deposited 02. Mar 2012 13:55) [Currently Displayed]
- A Citizen-Editors Model of News Media. (deposited 22. May 2011 23:14)
- A Citizen-Editors Model of News Media. (deposited 15. Apr 2011 14:46)