Media Bias and Advertising: Evidence from a German Car Magazine

Ralf Dewenter and Heimeshoff Ulrich ()
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Heimeshoff Ulrich: DICE, Heinrich-Heine-University of Duesseldorf, Universitaetsstr. 1, 40225 Duesseldorf, Germany

Review of Economics, 2014, vol. 65, issue 1, 77-94

Abstract: This paper investigates the existence of a possible media bias by analyzing the impact of automobile manufacturers’ advertisements on automobile reviews in a leading German car magazine. By accounting for both endogeneity and sample selection using a two-step procedure, we find a positive impact of advertising volumes on test scores. The main advantage of our study is the measurement of technical characteristics of cars to explain test scores. Due to this kind of measurement, we avoid serious biases in estimating media bias caused by omitted variables.

Keywords: Car magazines; Media bias; Selection model; Instrumental variable estimation (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (24)

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Working Paper: Media Bias and Advertising: Evidence from a German Car Magazine (2014)
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DOI: 10.1515/roe-2014-0105

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