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Media versus Special Interests

Author

Listed:
  • Alexander Dyck
  • David Moss
  • Luigi Zingales

Abstract

We argue that profit-maximizing media help to overcome the rational ignorance problem highlighted by Anthony Downs. By collecting news and combining it with entertainment, media are able to inform passive voters about regulation and other public policy issues, acting as a (partial) counterbalance to small but well-organized groups. To show the impact this information has on regulation, we document the effect muckraking magazines had on the voting patterns of U.S. representatives and senators on regulatory issues in the early part of the twentieth century. We also discuss the conditions under which media can serve to counterbalance special interests.

Suggested Citation

  • Alexander Dyck & David Moss & Luigi Zingales, 2013. "Media versus Special Interests," Journal of Law and Economics, University of Chicago Press, vol. 56(3), pages 521-553.
    • Handle: RePEc:ucp:jlawec:doi:10.1086/673216
    DOI: 10.1086/673216
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    More about this item

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • N41 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: Pre-1913
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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