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Advertising and Political Bias in the Media: The Market for Criticism of the Market Economy

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  • Daniel Sutter

Abstract

Many observers of the media argue that advertiser support of the news insulates business from critical scrutiny. News organizations know better than to bite the hand that feeds them. I examine several weaknesses in this corporate advertising bias argument. Most significantly, a favorable political climate for business is a public good, so individual businesses have an incentive to support anti–business messages that generate an audience. Transmission of messages that fail to generate sufficient demand is inefficient. In short, advertising does not create a significant political bias.

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  • Daniel Sutter, 2002. "Advertising and Political Bias in the Media: The Market for Criticism of the Market Economy," American Journal of Economics and Sociology, Wiley Blackwell, vol. 61(3), pages 725-745, July.
    • Handle: RePEc:bla:ajecsc:v:61:y:2002:i:3:p:725-745
    DOI: 10.1111/1536-7150.00187
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    Cited by:

    1. Diego Rinallo & Suman Basuroy & Ruhai Wu & Hyo Jeon, 2013. "The Media and Their Advertisers: Exploring Ethical Dilemmas in Product Coverage Decisions," Journal of Business Ethics, Springer, vol. 114(3), pages 425-441, May.
    2. repec:wvu:wpaper:09-08 is not listed on IDEAS
    3. Tim Groseclose & Jeffrey Milyo, 2005. "A Measure of Media Bias," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(4), pages 1191-1237.
    4. Ascensión Andina Díaz, 2011. "Mass Media in Economics: Origins and Subsequent Contributions," Working Papers 2011-02, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.

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