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Citizen-Editors' Endogenous Information Acquisition and News Accuracy

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  • Francesco Sobbrio

    ()
    (Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore)

Abstract

This paper provides a model of the market for news where profit-maximizing media outlets choose their editors from a population of rational citizens. The analysis identifies a novel mechanism of media bias: the bias in a media outlet's news reports is the result of the slanted endogenous information acquisition strategy of its editor. In particular, the results show that the expected accuracy of news reports is lower the more ideological an editor is. Nevertheless, citizens find it optimal to acquire information from a media outlet whose editor has similar ideological preferences. Depending on the distribution of citizens' ideological preferences, a media outlet may choose an ideological editor even in a monopolistic market. Moreover, ideological editors are more likely to be present in the market for news: i) the higher the number of media outlets competing in the market for news; ii) the lower the opportunity cost that citizens have to incur to acquire information

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Paper provided by Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) in its series DISCE - Working Papers del Dipartimento di Economia e Finanza with number def5.

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Length: 43
Date of creation: Nov 2013
Date of revision:
Handle: RePEc:ctc:serie1:def5

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Web page: http://dipartimenti.unicatt.it/defin
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Keywords: Media Bias; Slant; Information Acquisition; Valence; Competition;

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References

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Cited by:
  1. Florian Schuett & Amedeo Piolatto, 2014. "Media competition and electoral politics," Working Papers. Serie AD 2014-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  2. Tiziana Assenza & Jakob Grazzini & Cars Hommes & Domenico Massaro, 2014. "PQ Strategies in Monopolistic Competition: Some Insights from the Lab," DISCE - Working Papers del Dipartimento di Economia e Finanza def11, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  3. Russel Davidson & Andrea Monticini, 2014. "Heteroskedasticity-and-Autocorrelation-Consistent Bootstrapping," DISCE - Working Papers del Dipartimento di Economia e Finanza def12, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

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