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Content Aggregation by Platforms: The Case of the News Media

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  • Lesley Chiou
  • Catherine Tucker

Abstract

The digitization of content has led to the emergence of platforms that draw information from multiple sources. Policymakers are concerned that these new platforms threaten incentives for the production of original content. As a result, policymakers are contemplating regulations that would force aggregation platforms to pay or require an explicit "opt-in" for content providers. To understand the possible consequences and underlying rationale of such laws, we explore whether aggregation of content by a single platform encourages users to "skim" content or to investigate in depth. We study a contract dispute that led a major aggregator to remove information from a major content provider. We find that after the removal, users were less likely to investigate additional, related content in depth, particularly sources that were horizontally or vertically differentiated.

Suggested Citation

  • Lesley Chiou & Catherine Tucker, 2015. "Content Aggregation by Platforms: The Case of the News Media," NBER Working Papers 21404, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:21404
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    Cited by:

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    2. Julia Cage & Nicolas Hervé & Marie-Luce Viaud, 2017. "The Production of Information in an Online World: Is Copy Right?," Sciences Po publications DP12066, Sciences Po.
    3. Abhishek Nagaraj, 2018. "Does Copyright Affect Reuse? Evidence from Google Books and Wikipedia," Management Science, INFORMS, vol. 64(7), pages 3091-3107, July.
    4. Chrysanthos Dellarocas & Juliana Sutanto & Mihai Calin & Elia Palme, 2016. "Attention Allocation in Information-Rich Environments: The Case of News Aggregators," Management Science, INFORMS, vol. 62(9), pages 2543-2562, September.
    5. Alaoui, Larbi & Germano, Fabrizio, 2020. "Time scarcity and the market for news," Journal of Economic Behavior & Organization, Elsevier, vol. 174(C), pages 173-195.
    6. Ron Berman & Zsolt Katona, 2020. "Curation Algorithms and Filter Bubbles in Social Networks," Marketing Science, INFORMS, vol. 39(2), pages 296-316, March.
    7. Catarina Sismeiro & Ammara Mahmood, 2018. "Competitive vs. Complementary Effects in Online Social Networks and News Consumption: A Natural Experiment," Management Science, INFORMS, vol. 64(11), pages 5014-5037, November.
    8. Andres Algaba & David Ardia & Keven Bluteau & Samuel Borms & Kris Boudt, 2020. "Econometrics Meets Sentiment: An Overview Of Methodology And Applications," Journal of Economic Surveys, Wiley Blackwell, vol. 34(3), pages 512-547, July.
    9. Magnusson, Evan, 2021. "Local news in Google News: a response to Fischer et al. (2020)," MPRA Paper 106431, University Library of Munich, Germany.
    10. Jian Pei, 2020. "A Survey on Data Pricing: from Economics to Data Science," Papers 2009.04462, arXiv.org, revised Nov 2020.
    11. Boik, Andre & Greenstein, Shane & Prince, Jeffrey, 2019. "The persistence of broadband user behavior: Implications for universal service and competition policy," Telecommunications Policy, Elsevier, vol. 43(8), pages 1-1.
    12. Joan Calzada & Ricard Gil, 2020. "What Do News Aggregators Do? Evidence from Google News in Spain and Germany," Marketing Science, INFORMS, vol. 39(1), pages 134-167, January.
    13. Kyu Tae Kwak & Seong Choul Hong & Sang Woo Lee, 2018. "An Analysis of a Repetitive News Display Phenomenon in the Digital News Ecosystem," Sustainability, MDPI, Open Access Journal, vol. 10(12), pages 1-16, December.
    14. Selin Akca & Anita Rao, 2020. "Value of Aggregators," Marketing Science, INFORMS, vol. 39(5), pages 893-922, September.

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    More about this item

    JEL classification:

    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy

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