WHAT DO THE PAPERS SELL? A MODEL OF ADVERTISING AND MEDIA BIAS∗ (Pagehead title: ADVERTISING AND MEDIA BIAS)
نویسندگان
چکیده
We model the market for news as a two-sided market where newspapers sell news to readers who value accuracy and sell space to advertisers who value advert-receptive readers. In this setting, monopolistic newspapers under-report or bias news that sufficiently reduces advertiser profits. Paradoxically, increasing the size of advertising eventually leads competing newspapers to reduce advertiser bias. Nonetheless, advertisers can counter this effect if able to commit to newssensitive cut-off strategies, potentially inducing as much bias as in the monopoly case. We use these results to explain contrasting historical and recent evidence on commercial bias and influence in the media.
منابع مشابه
Specifying the Saturation Point of Advertising Budget Using Ideal Planning Model
The goal of the current study is to determine the optimal level of advertising beyond which advertising expenditure will not be justified by revenues. To achieve the goal first different types of media were rated by experts as to the degree of their importance. Then data ware collected by interviewing the managers and reviewing different media resources. The collected data were then analyze...
متن کاملModel in Order to Make Effective Decisions in Selecting Advertising Media by Goal Programming(GP)
In recent years according to the growing companies andproducts supplied, and competition between them has intensified. Productsand diversity, one of the main concerns of commercial institutions.Therefore, selecting the media to introduce and is important therelationship between customers’ products. Given the multiplicity of mediain promoting and marketing the products, they are the optimalchoic...
متن کاملSpecifying the Saturation Point of Advertising Budget Using Ideal Planning Model
The goal of the current study is to determine the optimal level of advertising beyond which advertising expenditure will not be justified by revenues. To achieve the goal first different types of media were rated by experts as to the degree of their importance. Then data ware collected by interviewing the managers and reviewing different media resources. The collected data were then analyze...
متن کاملGovernment Control of the Media
We present a formal model of government control of the media to illuminate variation in media freedom across countries and over time, with particular application to less democratic states. The extent of media freedom depends critically on two variables: the mobilizing character of the government and the size of the advertising market. Media bias is greater and state ownership of the media more ...
متن کاملMedia bias under direct and indirect government control: when is the bias smaller?
We present an analytical framework to compare media bias under direct and indirect government control. In this context, we show that direct control can lead to a smaller bias and higher welfare than indirect control. We further show that the size of the advertising market affects media bias only under direct control. Media bias, under indirect control, is not affected by the size of the adverti...
متن کامل