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Sensationalism, Newspaper Profits and the Marginal Value of Watergate

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Author Info
McChesney, Fred S
Abstract

Newspaper publishers supposedly profit from sensational events. Focusing on the two different products sold by publishers, newspapers and ad vertising space, this paper shows why sensational events do not necessarily increase publishers' wealth. It also uses financial market analysis to examine the wealth effects of one sensational event, Watergate, on a portfolio of newspaper stocks and on the Washington Post in particular. No significant effects are found. Copyright 1987 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Economic Inquiry.

Volume (Year): 25 (1987)
Issue (Month): 1 (January)
Pages: 135-44
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Handle: RePEc:oup:ecinqu:v:25:y:1987:i:1:p:135-44

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Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
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