A Citizens-Editors Model of News Media

Sobbrio, Francesco (2009): A Citizens-Editors Model of News Media.

Abstract

We model a market for news where profit maximizing media outlets choose their editors from a population of rational citizens. We show that when information acquisition is costly, liberal (conservative) citizens find optimal to acquire information from a media outlet having a liberal (conservative) editor. Consequently, we show that depending on the distribution of citizens' ideological preferences, a media outlet may choose to hire a non-moderate editor even in a monopolistic market. Moreover, the higher the degree of competition in the market for news, the more likely that media outlets will hire non-moderate editors. Finally, less moderate editors are more likely to be hired in a news market where the opportunity cost of acquiring information for citizens is low.

• Item Type: MPRA Paper
• Language: English
• Keywords: Media Bias; 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

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