Market Structure and Media Diversity

17 Pages Posted: 7 Feb 2015

See all articles by R. Scott Hiller

R. Scott Hiller

Fairfield University - Department of Economics

Scott Savage

University of Colorado at Boulder - Department of Economics

Donald Waldman

University of Colorado at Boulder - Department of Economics

Date Written: April 2015

Abstract

We estimate a mixed logit model of the demand for local news service. Results provide evidence that suggest the representative consumer values more diverse news, more coverage of multicultural issues, and more information on community news, and has a distaste for advertising. Demand estimates are used to calculate the impact on consumer welfare from a marginal decrease in the number of independent television stations that lowers the amount of diversity, multiculturalism, community news, and advertising. Consumer welfare decreases, but the losses are smaller in large markets. For example, small-market consumers lose $45 million annually while large-market consumers lose $13 million.

JEL Classification: C9, C25, L13, L82, L96

Suggested Citation

Hiller, R. Scott and Savage, Scott and Waldman, Donald, Market Structure and Media Diversity (April 2015). Economic Inquiry, Vol. 53, Issue 2, pp. 872-888, 2015. Available at SSRN: https://ssrn.com/abstract=2561661 or http://dx.doi.org/10.1111/ecin.12153

R. Scott Hiller (Contact Author)

Fairfield University - Department of Economics ( email )

Fairfield, CT 06824
United States

Scott Savage

University of Colorado at Boulder - Department of Economics ( email )

Campus Box 256
Boulder, CO 80309
United States
303-735-1165 (Phone)
303-492-1112 (Fax)

HOME PAGE: http://holiday.colorado.edu/savages/

Donald Waldman

University of Colorado at Boulder - Department of Economics ( email )

Campus Box 256
Boulder, CO 80309
United States

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