EconPapers    
Economics at your fingertips  
 

Downs meets d’Aspremont and company: Convergence versus differentiation in politics and the media

Wen-Chung Guo, Fu-Chuan Lai and Wing Suen

International Journal of Industrial Organization, 2018, vol. 60, issue C, 96-125

Abstract: Media firms have incentives to differentiate their news products to soften price competition. When consumers value cognitive consistency between the news they read and the policies they support, politicians are induced to propose more polarized policies to conform to a polarized media landscape. A stronger commercial motive or a weaker preference for editorial neutrality in the media exacerbates this effect and causes party policies to become more extreme. We find that prices for news products are higher when consumers have a demand for cognitive consistency, despite the fact that maximal product differentiation does not hold for media firms.

Keywords: Media positions; Political platforms; Polarization; Spatial competition; Cognitive consistency (search for similar items in EconPapers)
JEL-codes: D43 D72 L13 L82 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167718718300705
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:60:y:2018:i:c:p:96-125

Access Statistics for this article

International Journal of Industrial Organization is currently edited by P. Bajari, B. Caillaud and N. Gandal

More articles in International Journal of Industrial Organization from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-11-16
Handle: RePEc:eee:indorg:v:60:y:2018:i:c:p:96-125