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Media Competition and News Diets

Author

Listed:
  • Charles Angelucci

    (Columbia Business School)

  • Julia Cage

    (Département d'économie)

  • Michael Sinkinson

    (Yale School of Management)

Abstract

News media operate in two-sided markets, offering bundles of content to readers as well as selling readers' attention to advertisers. Technological innovations in content delivery, such as the advent of broadcast television or of the Internet, affect both sides of the market, threatening the basic economic model of print news operations. We examine how the entry of television affected local newspapers as well as consumer media diets in the United States. We develop a model of print media and show that entry of national television news could adversely affect the provision of local news. We construct a novel dataset of U.S. newspapers' economic performance and content choices from 1944 to 1964. Our empirical strategy exploits quasi-random variation in the timing of the entry of television in different markets. We show that the entry of television was a negative shock for newspapers, particularly evening newspapers, in both the readership and advertising markets. Further, we find a drop in the total quantity of news printed, in particular original reporting, raising concerns about the provision of local news.

Suggested Citation

  • Charles Angelucci & Julia Cage & Michael Sinkinson, 2020. "Media Competition and News Diets," Sciences Po publications 2020-03, Sciences Po.
  • Handle: RePEc:spo:wpmain:info:hdl:2441/4ec86lkes59hv9tfv77ld1p5fr
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    Cited by:

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    3. Nicola Mastrorocco & Arianna Ornaghi, 2020. "Who Watches the Watchmen? Local News and Police Behavior in the United States," Trinity Economics Papers tep0720, Trinity College Dublin, Department of Economics, revised Nov 2020.
    4. Julia Cage & Edgard Dewitte, 2021. "It Takes Money to Make MPs: Evidence from 150 Years of British Campaign Spending," SciencePo Working papers Main hal-03384143, HAL.
    5. Julia Cage & Edgard Dewitte, 2022. "When Does Money Matter for Elections?," Post-Print hal-03619549, HAL.
    6. Milena Djourelova & Ruben Durante & Gregory J. Martin, 2021. "The Impact of Online Competition on Local Newspapers: Evidence from the Introduction of Craigslist," CESifo Working Paper Series 9090, CESifo.
    7. Julia Cage & Edgard Dewitte, 2021. "It Takes Money to Make MPs: Evidence from 150 Years of British Campaign Spending," Sciences Po publications 2021-08, Sciences Po.
    8. Sevgi Yuksel, 2022. "Specialized Learning And Political Polarization," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(1), pages 457-474, February.
    9. Cassan, Guilhem & Cagé, Julia & Jensenius, Francesca, 2023. "Electoral Importance and the News Market: Novel Data and Quasi-Experimental Evidence from India," CEPR Discussion Papers 17920, C.E.P.R. Discussion Papers.
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    11. Charles Angelucci & Julia Cage & Romain de Nijs, 2013. "Price Discrimination in a Two-Sided Market: Theory and Evidence from the Newspaper Industry," Working Papers 13-13, NET Institute.
    12. David Flath, 2021. "Japanese newspapers," International Journal of Economic Policy Studies, Springer, vol. 15(2), pages 257-299, September.
    13. Julia Cage & Edgard Dewitte, 2022. "When Does Money Matter for Elections?," SciencePo Working papers Main hal-03619549, HAL.
    14. repec:hal:spmain:info:hdl:2441/7jk88md0ar9hga662p2vjjq4kc is not listed on IDEAS
    15. Ayush Pant & Federico Trombetta, 2022. "The Newsroom Dilemma," DISEIS - Quaderni del Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo dis2205, Università Cattolica del Sacro Cuore, Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo (DISEIS).
    16. Louis-Sidois, Charles & Mougin, Elisa, 2023. "Silence the media or the story? Theory and evidence of media capture," European Economic Review, Elsevier, vol. 158(C).
    17. Ewens, Michael & Gupta, Arpit & Howell, Sabrina, 2021. "Local Journalism under Private Equity Ownership," SocArXiv 6ynf4, Center for Open Science.
    18. Jacopo Perego & Sevgi Yuksel, 2022. "Media Competition and Social Disagreement," Econometrica, Econometric Society, vol. 90(1), pages 223-265, January.
    19. Cagé, Julia, 2017. "Media Competition, Information Provision and Political Participation: Evidence from French Local Newspapers and Elections, 1944," CEPR Discussion Papers 12198, C.E.P.R. Discussion Papers.
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    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • N72 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: 1913-

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