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More ads, more revs? Is there a media bias in the likelihood to be reviewed?

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  • Dewenter, Ralf
  • Heimeshoff, Ulrich

Abstract

This note analyzes the existence of a possible media bias by determining the impact of automobile manufactures' advertisements on the probability that German car magazines review their products. By accounting for possible endogeneity, we find a positive impact of advertising volumes on test probability.

Suggested Citation

  • Dewenter, Ralf & Heimeshoff, Ulrich, 2012. "More ads, more revs? Is there a media bias in the likelihood to be reviewed?," DICE Discussion Papers 57, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  • Handle: RePEc:zbw:dicedp:57
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    References listed on IDEAS

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    1. Jean-Charles Rochet & Jean Tirole, 2014. "Platform Competition in Two-Sided Markets," CPI Journal, Competition Policy International, vol. 10.
    2. Stefano DellaVigna & Ethan Kaplan, 2007. "The Fox News Effect: Media Bias and Voting," The Quarterly Journal of Economics, Oxford University Press, vol. 122(3), pages 1187-1234.
    3. Milgrom, Paul & Roberts, John, 1986. "Price and Advertising Signals of Product Quality," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 796-821, August.
    4. Matthew Gentzkow & Jesse M. Shapiro, 2006. "Media Bias and Reputation," Journal of Political Economy, University of Chicago Press, vol. 114(2), pages 280-316, April.
    5. Matthew Ellman & Fabrizio Germano, "undated". "What Do the Papers Sell?," Working Papers 149, Barcelona Graduate School of Economics.
    6. Matthew Gentzkow & Jesse M. Shapiro, 2010. "What Drives Media Slant? Evidence From U.S. Daily Newspapers," Econometrica, Econometric Society, vol. 78(1), pages 35-71, January.
    7. Lisa George & Joel Waldfogel, 2003. "Who Affects Whom in Daily Newspaper Markets?," Journal of Political Economy, University of Chicago Press, vol. 111(4), pages 765-784, August.
    8. Jonathan Reuter & Eric Zitzewitz, 2006. "Do Ads Influence Editors? Advertising and Bias in the Financial Media," The Quarterly Journal of Economics, Oxford University Press, vol. 121(1), pages 197-227.
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    Cited by:

    1. Ralf Dewenter & Ulrich Heimeshoff, 2015. "Do expert reviews really drive demand? Evidence from a German car magazine," Applied Economics Letters, Taylor & Francis Journals, vol. 22(14), pages 1150-1153, September.
    2. Jürgen Rösch, 2014. "More Surf, Less Bias: The Influence of Advertising in Two-Sided Sport Markets," International Journal of Sport Finance, Fitness Information Technology, vol. 9(4), pages 331-345, November.

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