Media diversity, advertising, and adaptation of news to readers’ political preferences
Armando Garcia Pires ()
Information Economics and Policy, 2014, vol. 28, issue C, 28-38
In this paper, it is analyzed how advertising can affect media diversity when news firms can adapt news to readers’ political preferences. In particular, in the model news firms can choose between a single- and a multi-ideology strategy (a point on the Hotelling line and a line segment, respectively). It is shown that the size of the advertising market is determinant for the equilibrium of the news market. When the advertising market is small, news firms maximally differentiate their political offers and do not adapt news to readers’ political preferences (single-ideology strategy). When the advertising market is large, news firms minimally differentiate their political offers and do adapt news to readers’ political preferences (multi-ideology strategy).
Keywords: Media diversity; Advertising; Two-sided markets (search for similar items in EconPapers)
JEL-codes: L13 L82 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:iepoli:v:28:y:2014:i:c:p:28-38
Access Statistics for this article
Information Economics and Policy is currently edited by D. Waterman
More articles in Information Economics and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().