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Public service broadcasting of sport, shows, and news as economic solution to the voter's paradox of rational ignorance

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  • Rothbauer, Julia
  • Sieg, Gernot

Abstract

Rational individuals may use a Public Service TV channel as welfare improving institution to solve the paradox of rationally being uninformed. To induce voters to watch unbiased serious informational contend the Public Service TV channel is not only broadcasting (unbiased serious) news but also sport and shows even though in many markets sport and shows are already broadcasted by private TV channels. Our approach is based on two-sided markets and the assumption of decreasing marginal returns of the factor information in the production process of democratic decisions.

Suggested Citation

  • Rothbauer, Julia & Sieg, Gernot, 2010. "Public service broadcasting of sport, shows, and news as economic solution to the voter's paradox of rational ignorance," MPRA Paper 27190, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:27190
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    Cited by:

    1. Garcia Pires Armando J., 2020. "Content Provision in the Media Market with Single-Homing and Multi-Homing Consumers," Review of Network Economics, De Gruyter, vol. 19(1), pages 43-83, March.
    2. Rothbauer, Julia & Sieg, Gernot, 2011. "Welfare effects of public service broadcasting in a free-to-air TV market," Economics Department Working Paper Series 13, Technische Universität Braunschweig, Economics Department.

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    More about this item

    Keywords

    Media Industry; voter behavior; two-sided markets; education;
    All these keywords.

    JEL classification:

    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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