Media bias and advertising: Evidence from a German car magazine

Ralf Dewenter and Ulrich Heimeshoff

No 132, DICE Discussion Papers from Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)

Abstract: This paper investigates the existence of a possible media bias by analyzing the impact of automobile manufacturer's 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)
JEL-codes: L15 L82 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-cul and nep-mkt
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Citations: View citations in EconPapers (21)

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Related works:
Journal Article: Media Bias and Advertising: Evidence from a German Car Magazine (2014)
Working Paper: Media Bias and Advertising: Evidence from a German Car Magazine (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:dicedp:132

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