IDEAS home Printed from https://ideas.repec.org/p/smx/wpaper/2025005.html

A Tale of Two News: The Impact of Media Outlets on Consumption Choices

Author

Listed:
  • Juan Carlos Angulo

    (Department of Economics, Universidad Iberoamericana)

  • Aldo Gutierrez-Mendieta

    (School of Social Sciences and Government, Tecnologico de Monterrey)

Abstract

How does exposure to multiple, sometimes conflicting, news stories influence individuals’ consumption choices? We address this question through a survey experiment in which participants are randomly assigned to receive one or two news headlines related to avocado consumption.These vignettes present either a positive framing (health benefits) or negative consequences, such as environmental damage or links to organized crime. After each exposure, we measure participants’ willingness to pay (WTP) for a standard product using a contingent valuation method. Our findings show that the content and emotional framing of information matter more than the number of exposures. The strongest effect comes from conflict-related news, which significantly reduces WTP. When participants receive two headlines, the second exposure tends to drive the response, especially in cases with conflicting information. Overall, these results suggest that consumers react not only to the presence of information but also to how it is framed. Even when the product remains unchanged, the tone and content of the message influence economic decisions in subtle but measurable ways.

Suggested Citation

  • Juan Carlos Angulo & Aldo Gutierrez-Mendieta, 2025. "A Tale of Two News: The Impact of Media Outlets on Consumption Choices," Working Paper Series Sobre México 2025005, Sobre México. Temas en economía.
  • Handle: RePEc:smx:wpaper:2025005
    as

    Download full text from publisher

    File URL: https://sobremexico.ibero.mx/uploads/working_papers/wp-sm-2025-05-angulo-gutierrez-mendietapdf.pdf
    File Function: First version, 2025
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chien, Yu-Lan & Huang, Cliff J. & Shaw, Daigee, 2005. "A general model of starting point bias in double-bounded dichotomous contingent valuation surveys," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 362-377, September.
    2. David L. Ortega & H. Holly Wang & Nicole J. Olynk Widmar, 2015. "Effects of media headlines on consumer preferences for food safety, quality and environmental attributes," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(3), pages 433-445, July.
    3. repec:osf:osfxxx:6ys2g_v1 is not listed on IDEAS
    4. Alberini Anna, 1995. "Efficiency vs Bias of Willingness-to-Pay Estimates: Bivariate and Interval-Data Models," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 169-180, September.
    5. Glynn T. Tonsor & Nicole J. Olynk, 2011. "Impacts of Animal Well‐Being and Welfare Media on Meat Demand," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(1), pages 59-72, February.
    6. Abhijit Banerjee & Eliana La Ferrara & Victor H. Orozco-Olvera, 2019. "The Entertaining Way to Behavioral Change: Fighting HIV with MTV," NBER Working Papers 26096, National Bureau of Economic Research, Inc.
    7. repec:hal:pseose:halshs-01245557 is not listed on IDEAS
    8. Bateman, Ian J. & Langford, Ian H. & Jones, Andrew P. & Kerr, Geoffrey N., 2001. "Bound and path effects in double and triple bounded dichotomous choice contingent valuation," Resource and Energy Economics, Elsevier, vol. 23(3), pages 191-213, July.
    9. Pinuccia Calia & Elisabetta Strazzera, 2000. "Bias and efficiency of single versus double bound models for contingent valuation studies: a Monte Carlo analysis," Applied Economics, Taylor & Francis Journals, vol. 32(10), pages 1329-1336.
    10. Kramer, Jaclyn & Simnitt, Skyler & Weber, Catharine, 2022. "Fruit and Tree Nuts Outlook: September 2022," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, vol. 2022(Fruit and), September.
    11. Hunt Allcott & Luca Braghieri & Sarah Eichmeyer & Matthew Gentzkow, 2020. "The Welfare Effects of Social Media," American Economic Review, American Economic Association, vol. 110(3), pages 629-676, March.
    12. Gelvez, Juan David & Angulo, Juan Carlos, 2024. "Public Attitudes Toward Forced Eradication: Protest, Gender, and Politics in Colombia," OSF Preprints 6ys2g, Center for Open Science.
    13. Eliana La Ferrara & Alberto Chong & Suzanne Duryea, 2012. "Soap Operas and Fertility: Evidence from Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 4(4), pages 1-31, October.
    14. Maja Adena & Ruben Enikolopov & Maria Petrova & Veronica Santarosa & Ekaterina Zhuravskaya, 2015. "Radio and the Rise of The Nazis in Prewar Germany," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(4), pages 1885-1939.
    15. Larsen, Vegard H. & Thorsrud, Leif A., 2019. "The value of news for economic developments," Journal of Econometrics, Elsevier, vol. 210(1), pages 203-218.
    16. Ortega, David L. & Wang, H. Holly & Widmar, Nicole J. Olynk, 2015. "Effects of media headlines on consumer preferences for food safety, quality and environmental attributes," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(3), July.
    17. Kahneman, Daniel & Ritov, Ilana, 1994. "Determinants of Stated Willingness to Pay for Public Goods: A Study in the Headline Method," Journal of Risk and Uncertainty, Springer, vol. 9(1), pages 5-38, July.
    18. Yuyu Chen & David Y. Yang, 2019. "The Impact of Media Censorship: 1984 or Brave New World?," American Economic Review, American Economic Association, vol. 109(6), pages 2294-2332, June.
    19. , & ,, 2011. "On the strategic use of attention grabbers," Theoretical Economics, Econometric Society, vol. 6(1), January.
    20. Stefano DellaVigna & Ethan Kaplan, 2007. "The Fox News Effect: Media Bias and Voting," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 1187-1234.
    21. Alberini Anna, 1995. "Optimal Designs for Discrete Choice Contingent Valuation Surveys: Single-Bound, Double-Bound, and Bivariate Models," Journal of Environmental Economics and Management, Elsevier, vol. 28(3), pages 287-306, May.
    22. Benjamin A. Olken, 2009. "Do Television and Radio Destroy Social Capital? Evidence from Indonesian Villages," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 1-33, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Donati, Dante, 2023. "Mobile Internet access and political outcomes: Evidence from South Africa," Journal of Development Economics, Elsevier, vol. 162(C).
    2. Ingar Haaland & Christopher Roth & Johannes Wohlfart, 2023. "Designing Information Provision Experiments," Journal of Economic Literature, American Economic Association, vol. 61(1), pages 3-40, March.
    3. Ou, Susan & Xiong, Heyu, 2021. "Mass persuasion and the ideological origins of the Chinese Cultural Revolution," Journal of Development Economics, Elsevier, vol. 153(C).
    4. Tim Friehe & Helge Mueller & Florian Neumeier, 2017. "Media content's role in the making of a democrat: Evidence from East Germany," MAGKS Papers on Economics 201711, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    5. Chadi, Adrian & Hoffmann, Manuel, 2021. "Television, Health, and Happiness: A Natural Experiment in West Germany," IZA Discussion Papers 14721, IZA Network @ LISER.
    6. Qian, Ruoyu, 2024. "Communist propaganda and women’s status," Journal of Development Economics, Elsevier, vol. 171(C).
    7. Mayank Aggarwal & Anindya S. Chakrabarti & Chirantan Chatterjee, 2023. "Movies, stigma and choice: Evidence from the pharmaceutical industry," Health Economics, John Wiley & Sons, Ltd., vol. 32(5), pages 1019-1039, May.
    8. Ruben Durante & Paolo Pinotti & Andrea Tesei, 2013. "Voting Alone? The Political and Cultural Consequences of Commercial TV," Sciences Po Economics Discussion Papers hal-03460816, HAL.
    9. Rossello, Giulia & Martinelli, Arianna, 2023. "The effect of lobbies’ narratives on academics' perceptions of scientific publishing: An information provision experiment," MERIT Working Papers 2023-010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Ashani Amarasinghe & Paul A. Raschky, 2022. "Competing for Attention - The Effect of Talk Radio on Elections and Political Polarization in the US," SoDa Laboratories Working Paper Series 2022-02, Monash University, SoDa Laboratories.
    11. Leonardo Bursztyn & Davide Cantoni, 2016. "Tear in the Iron Curtain: The Impact of Western Television on Consumption Behavior," The Review of Economics and Statistics, MIT Press, vol. 98(1), pages 25-41, March.
    12. Ghada Barsoum & Bruno Crépon & Drew Gardiner & Bastien Michel & William Parienté, 2022. "Evaluating the Impact of Entrepreneurship Edutainment in Egypt: An Experimental Approach," Economica, London School of Economics and Political Science, vol. 89(353), pages 82-109, January.
    13. Mathias Bühler & Andrew Dickens & Andrew C. Dickens, 2024. "From Couch to Poll: Media Content and the Value of Local Information," CESifo Working Paper Series 10959, CESifo.
    14. Ghosh, Ranjan & Goyal, Yugank & Rommel, Jens & Sagebiel, Julian, 2017. "Are small firms willing to pay for improved power supply? Evidence from a contingent valuation study in India," Energy Policy, Elsevier, vol. 109(C), pages 659-665.
    15. Farré, Lídia & Fasani, Francesco, 2013. "Media exposure and internal migration — Evidence from Indonesia," Journal of Development Economics, Elsevier, vol. 102(C), pages 48-61.
    16. Cheung, Maria, 2012. "Edutainment Radio, Women's Status and Primary School Participation: Evidence from Cambodia," Research Papers in Economics 2012:5, Stockholm University, Department of Economics.
    17. Gelo, Dambala & Koch, Steven F., 2015. "Contingent valuation of community forestry programs in Ethiopia: Controlling for preference anomalies in double-bounded CVM," Ecological Economics, Elsevier, vol. 114(C), pages 79-89.
    18. Rika Kumala Dewi & Daniel Suryadarma & Asep Suryahadi, 2018. "The impact of media on behaviour: Evidence from television coverage expansion and declining fertility in Indonesia," Development Policy Review, Overseas Development Institute, vol. 36(S1), pages 552-563, March.
    19. Benjamin A. Olken, 2009. "Do Television and Radio Destroy Social Capital? Evidence from Indonesian Villages," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 1-33, October.
    20. Alex Armand & Paul Atwell & Joseph F. Gomes & Yannik Schenk, 2023. "It's a bird, it's a plane, it's Superman! Using mass media to fight intolerance," NOVAFRICA Working Paper Series wp2302, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.

    More about this item

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:smx:wpaper:2025005. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Maria Alejandra Villegas Gutierrez (email available below). General contact details of provider: https://sobremexico.ibero.mx/es/publicaciones-y-datos/working-papers.html .

    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.