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Ideological media bias

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  • Stone, Daniel F.

Abstract

I develop a model of the market for news in which consumers and reporters both ideologically misinterpret information and have biased beliefs about the extent to which others misinterpret information. I show that for some parameter values, in equilibrium: (i) a monopolist media outlet hires a politically moderate reporter but duopolist outlets use relatively extreme, differentiated reporters; (ii) in duopoly, consumers think of their preferred outlet's news reporter as relatively unbiased and the other outlet's reporter as relatively biased; (iii) consumers, in the aggregate, may be less informed in duopoly than monopoly, despite more consumers receiving news in duopoly.

Suggested Citation

  • Stone, Daniel F., 2011. "Ideological media bias," Journal of Economic Behavior & Organization, Elsevier, vol. 78(3), pages 256-271, May.
  • Handle: RePEc:eee:jeborg:v:78:y:2011:i:3:p:256-271
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    References listed on IDEAS

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    1. Morris, Stephen, 1995. "The Common Prior Assumption in Economic Theory," Economics and Philosophy, Cambridge University Press, vol. 11(02), pages 227-253, October.
    2. Ascensión Andina-Díaz, 2009. "Media competition and information disclosure," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(2), pages 261-280, August.
    3. Matthew Gentzkow & Jesse M. Shapiro, 2008. "Competition and Truth in the Market for News," Journal of Economic Perspectives, American Economic Association, vol. 22(2), pages 133-154, Spring.
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    5. Wing Suen, 2010. "Mutual Admiration Clubs," Economic Inquiry, Western Economic Association International, vol. 48(1), pages 123-132, January.
    6. Bernhardt, Dan & Krasa, Stefan & Polborn, Mattias, 2008. "Political polarization and the electoral effects of media bias," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1092-1104, June.
    7. Jimmy Chan & Wing Suen, 2008. "A Spatial Theory of News Consumption and Electoral Competition," Review of Economic Studies, Oxford University Press, vol. 75(3), pages 699-728.
    8. Matthew Gentzkow & Jesse M. Shapiro, 2006. "Media Bias and Reputation," Journal of Political Economy, University of Chicago Press, vol. 114(2), pages 280-316, April.
    9. Menkhoff, Lukas & Nikiforow, Marina, 2009. "Professionals' endorsement of behavioral finance: Does it impact their perception of markets and themselves?," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 318-329, August.
    10. repec:hrv:faseco:33078973 is not listed on IDEAS
    11. Matthew Rabin & Joel L. Schrag, 1999. "First Impressions Matter: A Model of Confirmatory Bias," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 37-82.
    12. Sendhil Mullainathan & Andrei Shleifer, 2005. "The Market for News," American Economic Review, American Economic Association, vol. 95(4), pages 1031-1053, September.
    13. Hoch, Stephen J & Ha, Young-Won, 1986. " Consumer Learning: Advertising and the Ambiguity of Product Experience," Journal of Consumer Research, Oxford University Press, vol. 13(2), pages 221-233, September.
    14. Jeremy Burke, 2008. "Primetime Spin: Media Bias and Belief Confirming Information," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 17(3), pages 633-665, September.
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    Citations

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    Cited by:

    1. Takanori Adachi & Yoichi Hizen, 2014. "Political Accountability, Electoral Control and Media Bias," The Japanese Economic Review, Japanese Economic Association, vol. 65(3), pages 316-343, September.
    2. Redlicki, B., 2017. "Spreading Lies," Cambridge Working Papers in Economics 1747, Faculty of Economics, University of Cambridge.
    3. Matthew Gentzkow & Jesse M. Shapiro, 2011. "Ideological Segregation Online and Offline," The Quarterly Journal of Economics, Oxford University Press, vol. 126(4), pages 1799-1839.
    4. 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.
    5. Schroeder, Elizabeth & Stone, Daniel F., 2015. "Fox News and political knowledge," Journal of Public Economics, Elsevier, vol. 126(C), pages 52-63.
    6. Stone, Daniel F., 2013. "Media and gridlock," Journal of Public Economics, Elsevier, vol. 101(C), pages 94-104.
    7. repec:hrv:faseco:33078973 is not listed on IDEAS

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