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Influential News and Policy-making

Author

Listed:
  • Vaccari, Federico

Abstract

This paper analyzes the implications of those types of interventions that affect misreporting costs. I study a model of communication between an uninformed voter and a media outlet that knows the quality of two competing candidates. The alternatives available to the voter are endogenously championed by the two candidates. I show that higher costs may lead to more misreporting and persuasion, whereas low costs result in full revelation. Yet, interventions that increase misreporting costs never directly harm the voter, but those that do so slightly can be wasteful of public resources. Regulation produced by politicians leads to suboptimal interventions.

Suggested Citation

  • Vaccari, Federico, "undated". "Influential News and Policy-making," FEEM Working Papers 329584, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemwp:329584
    DOI: 10.22004/ag.econ.329584
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    File URL: https://ageconsearch.umn.edu/record/329584/files/NDL2022-040.pdf
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    Cited by:

    1. is not listed on IDEAS
    2. Albertazzi, Andrea & Ploner, Matteo & Vaccari, Federico, 2024. "Welfare and competition in expert advice markets," Journal of Economic Behavior & Organization, Elsevier, vol. 219(C), pages 74-103.
    3. Albertazzi, Andrea & Ploner, Matteo & Vaccari, Federico, "undated". "Welfare in Experimental News Markets," FEEM Working Papers 329585, Fondazione Eni Enrico Mattei (FEEM).
    4. repec:osf:socarx:5j2w8_v1 is not listed on IDEAS
    5. Vaccari, Federico, 2023. "Competition in costly talk," Journal of Economic Theory, Elsevier, vol. 213(C).

    More about this item

    Keywords

    ;

    JEL classification:

    • 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
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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