Media market structure and confirmatory news

Elena Panova

No 24-1597, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: This paper extends the reputational cheap-talk model to study the effect of media market structure on the quality of news, depending on news coverage characterized by: (i) the precision of common priors and (ii) the likelihood of follow-up quality assessment. We find that competition (weakly) increases the quality of news, except when the news covers controversial issues, the quality of which is likely to remain uncertain, such as politics. Competition adversely affects the quality of such news by increasing the elasticity of demand, thereby creating incentives to confirm common priors.

Keywords: quality of news; competition; reputational cheap-talk (search for similar items in EconPapers)
JEL-codes: D82 L10 L82 (search for similar items in EconPapers)
Date: 2024-11, Revised 2025-03-10
New Economics Papers: this item is included in nep-com, nep-gth, nep-ind and nep-mic
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Persistent link: https://EconPapers.repec.org/RePEc:tse:wpaper:129948

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