IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/11323.html
   My bibliography  Save this paper

Delegated information choice

Author

Listed:
  • Nimark, Kristoffer P
  • Pitschner, Stefan

Abstract

News media provide an editorial service for their audiences by monitoring a large number of events and by selecting the most newsworthy of these to report. Using a Latent Dirichlet Allocation topic model to classify news articles, we document the editorial function of US newspapers. We find that, while different newspapers on average tend to emphasize different topics, news coverage becomes more homogenous across newspapers after major events. We propose a theoretical model that can match these facts. In the model, agents delegate the choice of what to get information about to specialized providers that condition on ex post outcomes before deciding what to report. Because what different information providers choose to report is state dependent, the degree to which information about a given event is common among agents is endogenous and depends both on agents' preferences and the distribution of possible events. If agents have a strategic motive, they respond more strongly to events that they can infer are closer to common knowledge. Because different providers in some states of the world choose to report the same event, agents' actions are more correlated compared to a model in which agents choose ex ante what to get information about.

Suggested Citation

  • Nimark, Kristoffer P & Pitschner, Stefan, 2016. "Delegated information choice," CEPR Discussion Papers 11323, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:11323
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP11323
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vegard H�ghaug Larsen & Leif Anders Thorsrud, 2018. "Business cycle narratives," Working Papers No 6/2018, Centre for Applied Macro- and Petroleum economics (CAMP), BI Norwegian Business School.

    More about this item

    Keywords

    News media; Public information;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:11323. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.