Rudiger, Jesper (2013): Cross-Checking the Media.
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Abstract
A characteristic of the news market is that consumers often cross-check information, i.e. observe several news outlets. At the same time, data on political media suggest that more partisan consumers are more likely to cross-check. We explore these phenomena by building a model of horizontal competition in newspaper endorsements. Without cross-checking, outlets are unbiased and minimally differentiated. When cross-checking is allowed, we show that cross-checkers are indeed more partisan than those who only acquire one report. Furthermore, cross-checking induces outlets to differentiate, and the degree of differentiation is increasing in the dispersion of consumer beliefs. Differentiation is detrimental to consumer welfare, and a single monopoly outlet may provide higher consumer welfare than a competitive duopoly.
Item Type: | MPRA Paper |
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Original Title: | Cross-Checking the Media |
Language: | English |
Keywords: | News Markets; Media Bias; Cross-checking; Hotelling |
Subjects: | D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information ; Mechanism Design D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness L - Industrial Organization > L8 - Industry Studies: Services > L81 - Retail and Wholesale Trade ; e-Commerce |
Item ID: | 51786 |
Depositing User: | Jesper Rudiger |
Date Deposited: | 29 Nov 2013 05:00 |
Last Modified: | 27 Sep 2019 02:02 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/51786 |