Political Economics of Broadcast Media
29 Pages Posted: 8 Sep 2015
Date Written: September 3, 2015
We offer a tractable model of broadcast media as a three-sided platform, serving entertainment and news to viewers, commercial opportunities to advertisers, and electoral influence to politicians. We characterize the profit-maximization decision of a media firm, and study the effect on social welfare of changes in the value of electoral influence, via induced changes in commercial advertising, the entertainment value of media, and political distortions.
Keywords: Mass Media, political economics, political influence, welfare implications
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