Media diversity, advertising, and adaptation of news to readers’ political preferences

Pires, Armando José García

doi:10.1016/j.infoecopol.2014.06.001

Cited by 10 publications

(11 citation statements)

References 46 publications

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“…Garcia Pires () concludes that when the advertising market is sufficiently large, media outlets adapt news to conform to the diversity of opinions in the reader market. This is because, in his setup, there exists a positive externality from the reader market to the advertising market, that is, outlets' advertising revenues increase in the audience size.…”

Section: Introductionmentioning

confidence: 99%

“…In particular, we use a Salop‐model of a circular city to test the relationship between economic competition, measured by the number of firms on the circle, and pluralism, measured by the variety of content offered. We use the same technology as Alexandrov () and Garcia Pires () and allow firms not only to be located on single points on the circle, but also to choose continuous interval content. In particular, in media markets, the interval seems to be a good approximation for an outlet's ideological stance .…”

Section: Introductionmentioning

confidence: 99%

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Media market concentration and pluralism

Stühmeier

2018

Economics Manag Strategy

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We study the relationship between market concentration and market variety, and thereby focus on two dimensions of variety, namely on internal variety and on external variety. In our setup, firms can expand their internal variety continuously around their focus point on a Salop‐circle. External variety then refers to the market supply of variety offered by all firms on the circle. We believe that this setting is particularly applicable to media. It turns out that in more concentrated markets, there is an incentive to provide more internal variety in order to compete for consumers. Then, the relationship between market concentration and external variety turns out to be ambiguous. There also exists no clear free market bias with respect to socially optimal internal and external variety.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Media market concentration and pluralism

Stühmeier

2018

Economics Manag Strategy

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“…We differ from the standard media literature that uses the Hotelling model in two ways. First, like in Garcia Pires (, ), news firms can adapt news to readers' political preferences. Accordingly, media firms can choose between a single‐ideology strategy (i.e., a point on the Hotelling line), or a multi‐ideology strategy by adapting news to readers' political preferences (i.e., a line segment).…”

Section: Introductionmentioning

confidence: 99%

“…Second, differently from Garcia Pires (, ), we consider two different market structures: a private duopoly, with only private news firms that maximize profits; and a mixed duopoly, with a private news firm that maximizes profits and a public news firm that maximizes social welfare (profits of the private and the public news firms and consumer surplus).…”

Section: Introductionmentioning

confidence: 99%

“…Some of the factors pointed out in the literature that can influence media plurality are concentration of the media industry (George ; Roger ), advertising (Gabszewicz et al . , ; Argentesi and Filistrucchi ; Ellman and Germano ; Garcia Pires ), diversity of readers' political preferences (Garcia Pires ), market structure (Steiner ; George and Waldfogel ), subsidies (Lerocha and Wellbrock ), and technology (Gentzkow ; George and Hogendorn ).…”

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Media Plurality: Private versus Mixed Duopolies

Pires¹

2016

J Public Economic Theory

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SNF SAMFUNNS-OG NAERINGSLIVSFORSKNING AS-er et selskap i NHH-miljøet med oppgave å initiere, organisere og utføre eksternfinansiert forskning. Norges Handelshøyskole og Stiftelsen SNF er aksjonaerer. Virksomheten drives med basis i egen stab og fagmiljøene ved NHH.SNF er ett av Norges ledende forsk ningsmiljø innen anvendt økonomisk-administrativ forskning, og har gode samarbeidsrelasjoner til andre forskningsmiljøer i Norge og utlandet. SNF utfører forskning og forsknings baserte utredninger for sentrale beslutningstakere i privat og offentlig sektor. Forskningen organiseres i programmer og prosjekter av langsiktig og mer kortsiktig karakter. Alle publikasjoner er offentlig tilgjengelig. SNF CENTRE FOR APPLIED RESEARCH AT NHH-is a company within the NHH group. Its objective is to initiate, organize and conduct externally financed research. The company shareholders are the Norwegian School of Economics (NHH) and the SNF Foundation. Research is carried out by SNF´s own staff as well as faculty members at NHH. SNF is one of Norway´s leading research environment within applied economic administrative research. It has excellent working relations with other research environments in Norway as well as abroad. SNF conducts research and prepares research-based reports for major decision-makers both in the private and the public sector. Research is organized in programmes and projects on a long-term as well as a short-term basis. All our publications are publicly available. Abstract WorkingIn this paper, we analyze the e¤ects on media plurality of competition between a private news …rm that maximizes pro…ts and a publicly owned news …rm that maximizes social welfare. We show that when the costs to adapt news to readers'political preferences are high relatively to the intensity of the readers'political preferences, pro…ts in the industry are lower, but prices, media plurality, consumer surplus, and social welfare are higher in the mixed duopoly than in the private duopoly case. The contrary is true when the costs to adapt news to readers' political preferences are low relatively to the intensity of the readers' political preferences. This result is con…rmed with the introduction of advertising and ine¢ ciencies of the public …rm.

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2019

Digital Information Ecosystems

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Media diversity, advertising, and adaptation of news to readers’ political preferences

Cited by 10 publications

References 46 publications

Media market concentration and pluralism

Media market concentration and pluralism

Media Plurality: Private versus Mixed Duopolies

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