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Media Bias and Advertising: Evidence from a German Car Magazine

Ralf Dewenter and Ulrich Heimeshoff ()
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Ulrich Heimeshoff: DICE / Heinrich-Heine-Universität Düsseldorf, Postal: Universitätsstraße 1, 40225 Düsseldorf Germany

No 139/2014, Working Paper from Helmut Schmidt University, Hamburg

Abstract: This paper investigates the existence of a possible media bias by analyzing the impact of auto- mobile manufacturer’s advertisements on automobile reviews in a leading German car maga- zine. 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)
JEL-codes: L15 L82 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2014-04-17
New Economics Papers: this item is included in nep-eur, nep-mkt and nep-tre
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Related works:
Journal Article: Media Bias and Advertising: Evidence from a German Car Magazine (2014) Downloads
Working Paper: Media bias and advertising: Evidence from a German car magazine (2014) Downloads
Working Paper: Media Bias and Advertising: Evidence from German Car Magazines (2011) Downloads
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