Media Bias and Advertising: Evidence from German Car Magazines
This paper investigates the existence of a possible media bias by analyzing the impact of automobile manufactures' advertisements on automobile reviews in German car magazines. By accounting for both endogeneity and sample selection we find a positive impact of advertising volumes on test scores. Moreover, also a home bias in terms of higher scores for German cars is observable. We account these results as some evidence for a media bias, induced by the two-sidedness of the markets.
|Date of creation:||2011|
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