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User-Generated Content in News MediaPinar YildirimIndependent Esther Gal-OrUniversity of Pittsburgh - Katz Graduate School of Business Tansev GeylaniUniversity of Pittsburgh - Katz Graduate School of Business January 25, 2011 Abstract: In this study, we investigate a newspaper's decision to expand its product line by adding an online edition that incorporates user-generated content, and the impact of this decision on its slanting of news. We demonstrate that adding an online edition results in reduced profits for competing newspapers in comparison to an environment in which they offer only print editions. However, at the equilibrium, each newspaper offers the online version in order to avoid losing market share to rivals. The results also show the mitigating effect of such a product line extension on the extent of bias in print media.
Keywords: Media Competition, Bias in News, User-Generated Content, Product Line JEL Classification: C7, L82, L1 working papers seriesDate posted: February 3, 2011 ; Last revised: August 24, 2011Suggested CitationContact Information
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