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Media Bias and Advertising: Evidence from a German Car Magazine

Author

Listed:
  • Ralf Dewenter

    (Helmut Schmidt University, Hamburg)

  • Ulrich Heimeshoff

    (DICE / Heinrich-Heine-Universität Düsseldorf)

Abstract

This paper investigates the existence of a possible media bias by analyzing the impact of auto- mobile manufacturer’s advertisements on automobile reviews in a leading German car maga- zine. By accounting for both endogeneity and sample selection using a two-step procedure, we find a positive impact of advertising volumes on test scores. The main advantage of our study is the measurement of technical characteristics of cars to explain test scores. Due to this kind of measurement, we avoid serious biases in estimating media bias caused by omitted variables.

Suggested Citation

  • Ralf Dewenter & Ulrich Heimeshoff, 2014. "Media Bias and Advertising: Evidence from a German Car Magazine," Working Paper 139/2014, Helmut Schmidt University, Hamburg.
    • Handle: RePEc:ris:vhsuwp:2014_139
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    Cited by:

    1. Julia Wolfinger & Lars P. Feld & Ekkehard A. Köhler & Tobias Thomas, 2018. "57 Channels (And Nothin On) - Does TV-News on the Eurozone Affect Government Bond Yield Spreads?," CESifo Working Paper Series 7437, CESifo.
    2. Bernhardt, Lea & Dewenter, Ralf & Thomas, Tobias, 2023. "Measuring partisan media bias in US newscasts from 2001 to 2012," European Journal of Political Economy, Elsevier, vol. 78(C).
    3. Dewenter, Ralf & Dulleck, Uwe & Thomas, Tobias, 2018. "The political coverage index and its application to government capture," Research Papers 6, EcoAustria – Institute for Economic Research.
    4. Pannicke, Julia, 2015. "Media bias in women's magazines: Do advertisements influence editorial content?," Ilmenau Economics Discussion Papers 99, Ilmenau University of Technology, Institute of Economics.
    5. Ralf Dewenter & Uwe Dulleck & Tobias Thomas, 2016. "Does the 4th Estate Deliver? Towards a More Direct Measure of Political Media Bias," NCER Working Paper Series 116, National Centre for Econometric Research.
    6. Vollaard, Ben & van Ours, Jan C., 2022. "Bias in expert product reviews," Journal of Economic Behavior & Organization, Elsevier, vol. 202(C), pages 105-118.
    7. Bernhardt, Lea & Dewenter, Ralf & Thomas, Tobias, 2020. "Watchdog or loyal servant? Political media bias in US newscasts," DICE Discussion Papers 348, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    8. Hossain, Md Miran & Mammadov, Babak & Vakilzadeh, Hamid, 2024. "Friends in media: Implications of media connections for analyst forecast optimism," International Review of Financial Analysis, Elsevier, vol. 93(C).
    9. Diermeier, Matthias & Goecke, Henry & Niehues, Judith & Thomas, Tobias, 2017. "Impact of inequality-related media coverage on the concerns of the citzens," DICE Discussion Papers 258, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    10. Dewenter, Ralf & Linder, Melissa & Thomas, Tobias, 2018. "Can media drive the electorate? The impact of media coverage on party affiliation and voting intentions," Research Papers 7, EcoAustria – Institute for Economic Research.
    11. Tom Hamami & James Bailey, 2021. "Expert product reviews and conflict of interest," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(1), pages 170-176, January.
    12. Dewenter Ralf & Lüth Hendrik, 2015. "Eine alternative Definition von Suchneutralität / An alternative definition of search neutrality," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 66(1), pages 221-242, January.
    13. Thomas, Tobias, 2020. "Zur Rolle der Medien in der Demokratie," DICE Ordnungspolitische Perspektiven 104, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    14. Hirsch, Patrick & Köhler, Ekkehard A. & Feld, Lars P. & Thomas, Tobias, 2020. ""Whatever it takes!": How tonality of TV-news affects government bond yield spreads during crises," Freiburg Discussion Papers on Constitutional Economics 20/9, Walter Eucken Institut e.V..
    15. Tom Hamami, 2019. "Network Effects, Bargaining Power, and Product Review Bias: Theory and Evidence," Journal of Industrial Economics, Wiley Blackwell, vol. 67(2), pages 372-407, June.
    16. Dieter Pennerstorfer & Christoph Weiss & Andreas Huber, 2019. "Experts, Reputation and Umbrella Effects: Empirical Evidence from Wine Prices," Economics working papers 2019-08, Department of Economics, Johannes Kepler University Linz, Austria.
    17. Dewenter, Ralf & Linder, Melissa & Thomas, Tobias, 2019. "Can media drive the electorate? The impact of media coverage on voting intentions," European Journal of Political Economy, Elsevier, vol. 58(C), pages 245-261.
    18. Ralf Dewenter & Uwe Dulleck & Tobias Thomas, 2020. "Does the 4th estate deliver? The Political Coverage Index and its application to media capture," Constitutional Political Economy, Springer, vol. 31(3), pages 292-328, September.

    More about this item

    Keywords

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    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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