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AbstractWe 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. We show that a monopoly newspaper under-reports or biases news that sufficiently reduces advertiser profits, whereas in the duopoly case, newspapers may paradoxically increase accuracy as the size of advertisers grows. We then show how advertisers can thwart this competitive effect on newspaper accuracy by committing to certain cut-off strategies, potentially inducing the same level of under-reporting as in the monopoly case.
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Bibliographic InfoPaper provided by Barcelona Graduate School of Economics in its series Working Papers with number 149.
Date of creation: Oct 2004
Date of revision:
Two-sided markets; advertising; media accuracy; media bias; media economics;
Other versions of this item:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
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