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A Citizens-Editors Model of News Media

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  • Sobbrio, Francesco

Abstract

We model a market for news where profit maximizing media outlets choose their editors from a population of rational citizens. We show that when information acquisition is costly, liberal (conservative) citizens find optimal to acquire information from a media outlet having a liberal (conservative) editor. Consequently, we show that depending on the distribution of citizens' ideological preferences, a media outlet may choose to hire a non-moderate editor even in a monopolistic market. Moreover, the higher the degree of competition in the market for news, the more likely that media outlets will hire non-moderate editors. Finally, less moderate editors are more likely to be hired in a news market where the opportunity cost of acquiring information for citizens is low.

Suggested Citation

  • Sobbrio, Francesco, 2009. "A Citizens-Editors Model of News Media," MPRA Paper 18213, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:18213
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    References listed on IDEAS

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    Cited by:

    1. 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.

    More about this item

    Keywords

    Media Bias; Information Acquisition; Valence; Competition;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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