Old Media Policy Failures, New Media Policy Challenges
AbstractThis paper deals with two related subjects. The first is the failure of economic analysis to trigger elimination of welfare-reducing public policies affecting the older mass media technologies, such as broadcasting. The second is some speculation about policy issues that may continue or arise in the future given the technical characteristics of the new broadband media, combined with advances in social psychology, neuroscience and behavioral economics. I draw two principal conclusions. First, the failure of economic analysis to stimulate fundamental reform of media regulation is largely due to the fact that policy makers have greater incentives to focus on the allocation of economic rents among interest groups than to promote consumer welfare. Second, it is clear that IP-based technology is replacing old media such as newspapers and broadcast stations. The technology has the potential to greatly enhance competition and diversity, and to reduce the cost of access by consumers and suppliers to each other. However, regulation is not likely to be reduced, because a whole new rationale for media regulation is being developed. The new rational will be a market failure—adverse welfare effects of competitive media content responsive to consumers’ cognitive impairments.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Stanford Institute for Economic Policy Research in its series Discussion Papers with number 08-038.
Date of creation: Jun 2009
Date of revision:
mass media; technology; regulation;
Find related papers by JEL classification:
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Riccardo Puglisi & James M. Snyder, Jr., 2008. "Media Coverage of Political Scandals," NBER Working Papers 14598, National Bureau of Economic Research, Inc.
- François Salanié & Nicolas Treich, 2009.
"Regulation in Happyville,"
Royal Economic Society, vol. 119(537), pages 665-679, 04.
- Salanié, François & Treich, Nicolas, 2009. "Regulation in Happyville," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jackie Buttice) The email address of this maintainer does not seem to be valid anymore. Please ask Jackie Buttice to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.