Discrimination as a Competitive Device: The Case of Local Television News
AbstractLocal news offers a unique look not only at customer preferences but also at the strategic response of firms to these preferences. This paper uses a combination of ratings data and newly gathered information on television stations in 25 U.S. markets to examine the decisions of competing firms and how customers respond to the journalists who appear onair at the different stations in a market. The results indicate that there is a negative correlation between the racial, gender, and age composition of competing firms. Moreover, the ratings data suggest that the stations with relatively few blacks on-air are catering to the more discriminatory customers. While a similar result is found for age and gender, the reverse holds for other groups, suggesting possible tastes for diversity for Hispanics and Asians. Taken as a whole, the evidence supports a theoretical model in which firms differentiate via the characteristics of their employees in response to customer prejudice.
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Bibliographic InfoPaper provided by Middlebury College, Department of Economics in its series Middlebury College Working Paper Series with number 0526.
Length: 41 pages
Date of creation: Sep 2005
Date of revision:
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economics of gender and minorities; customer discrimination; product differentiation; Nielsen ratings;
Other versions of this item:
- Myers Caitlin Knowles, 2008. "Discrimination as a Competitive Device: The Case of Local Television News," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-28, August.
- Myers, Caitlin Knowles, 2005. "Discrimination as a Competitive Device: The Case of Local Television News," IZA Discussion Papers 1802, Institute for the Study of Labor (IZA).
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-12 (All new papers)
- NEP-MKT-2005-11-12 (Marketing)
- NEP-URE-2005-11-12 (Urban & Real Estate Economics)
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