On Commercial Media Bias

39 Pages Posted: 7 Apr 2009

See all articles by Fabrizio Germano

Fabrizio Germano

Universitat Pompeu Fabra - Department of Economics and Business

Date Written: December 15, 2008

Abstract

Within the spokes model of Chen and Riordan (2007) that allows for non-localized competition among arbitrary numbers of media outlets, we quantify the effect of concentration of ownership on quality and bias of media content. A main result shows that too few commercial outlets, or better, too few separate owners of commercial outlets can lead to substantial bias in equilibrium. Increasing the number of outlets (commercial and non-commercial) tends to bring down this bias; but the strongest effect occurs when the number of owners is increased. Allowing for free entry provides lower bounds on fixed costs above which substantial commercial bias occurs in equilibrium.

Keywords: Commercial media, concentration and consolidation, media bias, self-censorship, ownership structure

JEL Classification: L13, L82

Suggested Citation

Germano, Fabrizio, On Commercial Media Bias (December 15, 2008). Available at SSRN: https://ssrn.com/abstract=1374241 or http://dx.doi.org/10.2139/ssrn.1374241

Fabrizio Germano (Contact Author)

Universitat Pompeu Fabra - Department of Economics and Business ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain
+34-93-542-2729 (Phone)
+34-93-542-1746 (Fax)

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