Advertising Spending and Media Bias: Evidence from News Coverage of Car Safety Recalls

Graham Beattie (graham.beattie@lmu.edu), Ruben Durante, Brian Knight and Ananya Sen

No 23940, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Do news media bias content in favor of advertisers? We examine the relationship between advertising by auto manufacturers in U.S. newspapers and news coverage of car safety recalls. This context allows us to separate the influence of advertisers, who prefer less coverage, from that of readers, who demand more. Consistent with theoretical predictions, we find that newspapers provide less coverage of recalls by their advertisers, especially the more severe ones. Competition for readers from other newspapers mitigates bias, while competition for advertising by online platforms exacerbates it. Finally, we present suggestive evidence that lower coverage increases auto fatalities.

JEL-codes: L10 L82 M21 M37 (search for similar items in EconPapers)
Date: 2017-10
New Economics Papers: this item is included in nep-com, nep-ind and nep-mkt
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Citations: View citations in EconPapers (3)

Published as Graham Beattie & Ruben Durante & Brian Knight & Ananya Sen, 2021. "Advertising Spending and Media Bias: Evidence from News Coverage of Car Safety Recalls," Management Science, vol 67(2), pages 698-719.

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Related works:
Journal Article: Advertising Spending and Media Bias: Evidence from News Coverage of Car Safety Recalls (2021)
Working Paper: Advertising Spending and Media Bias: Evidence from News Coverage of Car Safety Recalls (2017)
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