Media Competition and Information Disclosure
AbstractThis paper analyzes an election game where self-interested politicians can exploit the lack of information that voters have about candidates' preferred policies in order to pursue their own agendas. In such a setup, we study the incentives of newspapers to acquire costly information, and how competition among the media affect such incentives. We show that the higher the number of potential readers and/or the lower the cost or investigating, the more the newspapers investigate. We also show that the readers' purchasing habits play a crucial role in the model. More specifically, we show that if the readers always buy a newspaper, media competition favors information disclosure; whereas if they just buy a newspaper in the case news are uncovered, competition is not so desirable.
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Bibliographic InfoPaper provided by Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center in its series Working Papers with number 2008-5.
Length: 24 pages
Date of creation: Mar 2008
Date of revision:
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Media competition; Political accountability; Information;
Other versions of this item:
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-03-25 (All new papers)
- NEP-CDM-2008-03-25 (Collective Decision-Making)
- NEP-COM-2008-03-25 (Industrial Competition)
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