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The Effect of Entertainment in Newspaper and Television News Coverage

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  • Greiner, Tanja
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    Abstract

    In this paper, we analyze the equilibrium amount of entertainment in news coverage of newspapers and television stations. We find that a shift in the inclination to read, expressed by a shift in the (psychological) distance costs, induces both media outlets to incorporate more entertaining elements in news coverage. The introduction of commercial television, however, which leads to a unilateral fall in the distance costs to the television broadcast, yields different results. It induces a negative effect on the profits of both media outlets, and increases price competition. Furthermore, the newspaper offers less while the television channel offers more entertainment. Overall, this leads to a marginalization of informational content, as the television channel gains market shares at the expense of the newspaper.

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    File URL: http://epub.ub.uni-muenchen.de/11551/1/The_effect_of_entertainment_in_newspaper_and_television_news_coverage.pdf
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    Bibliographic Info

    Paper provided by University of Munich, Department of Economics in its series Discussion Papers in Economics with number 11551.

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    Date of creation: Jun 2010
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    Handle: RePEc:lmu:muenec:11551

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    Related research

    Keywords: media economics; industrial organization; media bias; horizontal product differentiation; duopoly;

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    1. d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979. "On Hotelling's "Stability in Competition"," Econometrica, Econometric Society, vol. 47(5), pages 1145-50, September.
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