Date: 2013
Type: Working Paper
Cross-checking the media
Working Paper, EUI MWP, 2013/17
RUDIGER, Jesper, Cross-checking the media, EUI MWP, 2013/17 - https://hdl.handle.net/1814/27461
Retrieved from Cadmus, EUI Research Repository
A characteristic of the news market is that consumers often cross-check information, i.e. observe several news outlets. At the same time, data on political media suggest that more partisan consumers are more likely to cross-check. We explore these phenomena by building a model of horizontal competition in newspaper endorsements. Without cross-checking, outlets are unbiased and minimally differentiated. When cross-checking is allowed, we show that cross-checkers are indeed more partisan than those who only acquire one report. Furthermore, cross-checking induces outlets to differentiate, and the degree of differentiation is increasing in the dispersion of consumer beliefs. Differentiation is detrimental to consumer welfare, and a single monopoly outlet may provide higher consumer welfare than a competitive duopoly.
Cadmus permanent link: https://hdl.handle.net/1814/27461
ISSN: 1830-7728
Series/Number: EUI MWP; 2013/17
Keyword(s): News markets Media bias Cross-checking Hotelling D82 D83 L81