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Media diversity, advertising, and adaptation of news to readers’ political preferences

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  • Garcia Pires, Armando J.

Abstract

In this paper, it is analyzed how advertising can affect media diversity when news firms can adapt news to readers’ political preferences. In particular, in the model news firms can choose between a single- and a multi-ideology strategy (a point on the Hotelling line and a line segment, respectively). It is shown that the size of the advertising market is determinant for the equilibrium of the news market. When the advertising market is small, news firms maximally differentiate their political offers and do not adapt news to readers’ political preferences (single-ideology strategy). When the advertising market is large, news firms minimally differentiate their political offers and do adapt news to readers’ political preferences (multi-ideology strategy).

Suggested Citation

  • Garcia Pires, Armando J., 2014. "Media diversity, advertising, and adaptation of news to readers’ political preferences," Information Economics and Policy, Elsevier, vol. 28(C), pages 28-38.
  • Handle: RePEc:eee:iepoli:v:28:y:2014:i:c:p:28-38
    DOI: 10.1016/j.infoecopol.2014.06.001
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    References listed on IDEAS

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    Cited by:

    1. Stühmeier, Torben, 2016. "Media market concentration and pluralism," CAWM Discussion Papers 87, University of Münster, Center of Applied Economic Research Münster (CAWM).
    2. repec:kap:ejlwec:v:43:y:2017:i:2:d:10.1007_s10657-016-9548-x is not listed on IDEAS
    3. Maria Battaggion & Alessandro Vaglio, 2015. "Watchdogs, Platforms and Audience: An Economic Perspective on Media Markets," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 43(2), pages 209-228, June.
    4. Behringer, Stefan & Filistrucchi, Lapo, 2015. "Hotelling competition and political differentiation with more than two newspapers," Information Economics and Policy, Elsevier, vol. 30(C), pages 36-49.
    5. repec:hrv:faseco:33078973 is not listed on IDEAS

    More about this item

    Keywords

    Media diversity; Advertising; Two-sided markets;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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