Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Wednesday, January 21, 2009

On Commercial Media Bias

Posted by D. Daniel Sokol

P2364b Fabrizio Germano (University Pompeu Fabra - Economics) has an interesting paper On Commercial Media Bias.

ABSTRACT: Within the spokes model of Chen and Riordan (2007) that allows for non-localized competition among arbitrary numbers of media outlets, we quantify the effect of concentration of ownership on quality and bias of media content. A main result shows that too few commercial outlets, or better, too few separate owners of commercial outlets can lead to substantial bias in equilibrium. Increasing the number of outlets (commercial and non-commercial) tends to bring down this bias; but the strongest effect occurs when the number of owners is increased. Allowing for free entry provides lower bounds on fixed costs above which substantial commercial bias occurs in equilibrium.

http://lawprofessors.typepad.com/antitrustprof_blog/2009/01/on-commercial-m.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef010536c6b52c970c

Listed below are links to weblogs that reference On Commercial Media Bias:

Comments

Post a comment