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Competition of newspapers and the location of political parties

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  • Norbert Schulz
  • Joachim Weimann

Abstract

In this paper we suggest a model for an analysis of how newspapers and political parties determine their ideological orientation and how both decisions depend on each other. Quite naturally dissemination of information plays an important role. The model is set up as a two-stage game. Because elements of horizontal as well as vertical product differentiation are present in this model location patterns in ideology space exhibit in general neither maximal nor minimal differentiation, although we keep quite close to the Downs model, with information as the most important distinguishing feature. Furthermore, the model shows by way of example that economic theory can be a useful tool to investigate issues which are central to communication science. Copyright Kluwer Academic Publishers 1989

Suggested Citation

  • Norbert Schulz & Joachim Weimann, 1989. "Competition of newspapers and the location of political parties," Public Choice, Springer, vol. 63(2), pages 125-147, November.
    • Handle: RePEc:kap:pubcho:v:63:y:1989:i:2:p:125-147
    DOI: 10.1007/BF00153396
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    References listed on IDEAS

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    1. Gabszewicz, Jean Jaskold & Thisse, Jacques-Francois, 1986. "On the Nature of Competition with Differentiated Products," Economic Journal, Royal Economic Society, vol. 96(381), pages 160-172, March.
    2. Avner Shaked & John Sutton, 1982. "Relaxing Price Competition Through Product Differentiation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(1), pages 3-13.
    3. repec:ulb:ulbeco:2013/1759 is not listed on IDEAS
    4. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135-135.
    5. Daniel Orr, 1987. "Notes on the mass media as an economic institution," Public Choice, Springer, vol. 53(1), pages 79-95, January.
    6. Gianluigi Galeotti & Albert Breton, 1986. "An Economic Theory of Political Parties," Kyklos, Wiley Blackwell, vol. 39(1), pages 47-65, February.
    7. de Palma, A, et al, 1985. "The Principle of Minimum Differentiation Holds under Sufficient Heterogeneity," Econometrica, Econometric Society, vol. 53(4), pages 767-781, July.
    8. Neven, Damien, 1985. "Two Stage (Perfect) Equilibrium in Hotelling's Model," Journal of Industrial Economics, Wiley Blackwell, vol. 33(3), pages 317-325, March.
    9. Eli Noam, 1987. "A public and private-choice model of broadcasting," Public Choice, Springer, vol. 55(1), pages 163-187, September.
    10. Steven Garber, 1987. "The economics and political economy of broadcasting: challenges in developing an analytic foundation," Public Choice, Springer, vol. 55(1), pages 189-198, September.
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    Cited by:

    1. Ascensión Andina-Díaz, 2006. "Political competition when media create candidates’ charisma," Public Choice, Springer, vol. 127(3), pages 345-366, June.
    2. Ascensión Andina, 2003. "What Do Media Outlets Compete For?," Working Papers. Serie AD 2003-19, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    3. Garcia Pires, Armando J., 2014. "Media diversity, advertising, and adaptation of news to readers’ political preferences," Information Economics and Policy, Elsevier, vol. 28(C), pages 28-38.
    4. Gabszewicz, Jean J. & Laussel, Dider & Sonnac, Nathalie, 2001. "Press advertising and the ascent of the 'Pensee Unique'," European Economic Review, Elsevier, vol. 45(4-6), pages 641-651, May.
    5. Ascensión Andina-Díaz, 2007. "Reinforcement vs. change: The political influence of the media," Public Choice, Springer, vol. 131(1), pages 65-81, April.
    6. Guo, Wen-Chung & Lai, Fu-Chuan & Suen, Wing, 2018. "Downs meets d’Aspremont and company: Convergence versus differentiation in politics and the media," International Journal of Industrial Organization, Elsevier, vol. 60(C), pages 96-125.
    7. GABSZEWICZ, Jean J. & LAUSSEL, Didier & SONNAC, Nathalie, 2000. "Does press advertising foster the “pensée unique”?," LIDAM Discussion Papers CORE 2000008, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. 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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