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News Sources and Media Bias

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  • Armando J. Garcia-Pires
  • Hans Jarle Kind
  • Lars Sørgard

Abstract

In this paper we investigate the relationship between news sources and media firms. Although empirically important, this channel for supply-driven media bias has not previously been analyzed in economics literature. We model the relationship as an informal contract based on trust and punishment, where a news source decides if and how much information to provide to a media firm. Strategic interactions between these agents may have a significant impact on the level of media bias in the market. In particular, we show that in some cases the news source provides information if and only if there is competition in the media market, while in other cases competition between media firms reduces the amount of information that is made available to the audience.

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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3906.

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Date of creation: 2012
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Handle: RePEc:ces:ceswps:_3906

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Related research

Keywords: news sources; media bias; informal contracts;

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References

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  1. Matthew Gentzkow & Jesse M. Shapiro, 2008. "Competition and Truth in the Market for News," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 22(2), pages 133-154, Spring.
  2. Besley, Timothy J. & Prat, Andrea, 2002. "Handcuffs for the Grabbing Hand? Media Capture and Government Accountability," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3132, C.E.P.R. Discussion Papers.
  3. Lisa George & Joel Waldfogel, 2003. "Who Affects Whom in Daily Newspaper Markets?," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 111(4), pages 765-784, August.
  4. Sendhil Mullainathan & Andrei Shleifer, 2002. "Media Bias," NBER Working Papers 9295, National Bureau of Economic Research, Inc.
  5. GABSZEWICZ, Jean J. & LAUSSEL, Didier & SONNAC, Nathalie, . "Press advertising and the ascent of the `Pensée Unique'," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -1512, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Matthew Gentzkow & Jesse Shapiro, 2005. "Media Bias and Reputation," NBER Working Papers 11664, National Bureau of Economic Research, Inc.
  7. David P. Baron, 2005. "Competing for the Public Through the News Media," Journal of Economics & Management Strategy, Wiley Blackwell, Wiley Blackwell, vol. 14(2), pages 339-376, 06.
  8. David Str–mberg, 2004. "Mass Media Competition, Political Competition, and Public Policy," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 71(1), pages 265-284, 01.
  9. Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 89(4), pages 615-41, August.
  10. Matthew Ellman & Fabrizio Germano, 2009. "What do the Papers Sell? A Model of Advertising and Media Bias," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 119(537), pages 680-704, 04.
  11. Baron, David P., 2006. "Persistent media bias," Journal of Public Economics, Elsevier, Elsevier, vol. 90(1-2), pages 1-36, January.
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