Antitrust & Competition Policy Blog

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

Thursday, August 11, 2011

Competition and Commercial Media Bias

Posted by D. Daniel Sokol

Andrea Blascoy (University of Bologna) & Francesco Sobbrio (IMT Lucca) address Competition and Commercial Media Bias.

ABSTRACT: This paper reviews the empirical evidence on commercial media bias (i.e., advertisers inuence over news reports) and then introduces a simple model to summarize the main elements of the theoretical literature. The analysis provides three main policy insights for media regulators: i) Media regulators should target their monitoring efforts towards news contents upon which advertisers are likely to share similar preferences; ii) In advertising industries characterized by highly correlated products, an increase in the degree of competition may translate into a lower accuracy of news reports; iii) A sufficiently high degree of competition in the market for news may drive out commercial media bias.

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