Content Aggregation by Platforms: The Case of the News Media

40 Pages Posted: 13 Jun 2011 Last revised: 2 Dec 2015

Lesley Chiou

Occidental College - Department of Economics

Catherine E. Tucker

Massachusetts Institute of Technology (MIT) - Management Science (MS)

Multiple version iconThere are 2 versions of this paper

Date Written: July 17, 2015

Abstract

The digitization of content has led to the emergence of platforms that draw information from multiple sources. Policymakers are concerned that these new platforms threaten incentives for the production of original content. As a result, policymakers are contemplating regulations that would force aggregation platforms to pay or require an explicit "opt-in" for content providers. To understand the possible consequences and underlying rationale of such laws, we explore whether aggregation of content by a single platform encourages users to "skim" content or to investigate in depth. We study a contract dispute that led a major aggregator to remove information from a major content provider. We find that after the removal, users were less likely to investigate additional, related content in depth, particularly sources that were horizontally or vertically differentiated.

Keywords: digitization, information, consumer search, online, Internet

JEL Classification: L86

Suggested Citation

Chiou, Lesley and Tucker, Catherine E., Content Aggregation by Platforms: The Case of the News Media (July 17, 2015). NET Institute Working Paper No. 11-18. Available at SSRN: https://ssrn.com/abstract=1864203 or http://dx.doi.org/10.2139/ssrn.1864203

Lesley Chiou (Contact Author)

Occidental College - Department of Economics ( email )

1600 Campus Road
Los Angeles, CA 90041
United States

HOME PAGE: http://www.faculty.oxy.edu/lchiou

Catherine E. Tucker

Massachusetts Institute of Technology (MIT) - Management Science (MS) ( email )

100 Main St
E62-536
Cambridge, MA 02142
United States

HOME PAGE: http://cetucker.scripts.mit.edu

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