Strategic Grouping and Search for Quality Journalism, Online versus Offline

30 Pages Posted: 19 Oct 2016

See all articles by Matthew Ellman

Matthew Ellman

Institut d'Anàlisi Econòmica (CSIC); Barcelona Graduate School of Economics (Barcelona GSE)

Tomás Rodríguez Barraquer

Universidad de los Andes

Date Written: October 1, 2016

Abstract

This paper investigates how supply-side factors influence the search for quality content in online and offline environments. We show that lower fixed costs of online publishing reduce the incentives to bundle content, as compared to offline journalism. In the presence of asymmetric information over journalistic quality, bundling of content by journalists who publish as a group generates positive informational externalities for users. Journalists group assortatively, better journalists having better partners. Then a consumer who discovers one quality journalist, has found several. The online environment, by reducing the pressure to group up, can lower welfare in our baseline model. We establish conditions for this result and investigate a number of countervailing forces.

Keywords: Media Economics, Quality, Search, Links, Matching

JEL Classification: L13, L82

Suggested Citation

Ellman, Matthew and Rodríguez Barraquer, Tomás, Strategic Grouping and Search for Quality Journalism, Online versus Offline (October 1, 2016). NET Institute Working Paper No. 16-21, Available at SSRN: https://ssrn.com/abstract=2853072 or http://dx.doi.org/10.2139/ssrn.2853072

Matthew Ellman (Contact Author)

Institut d'Anàlisi Econòmica (CSIC) ( email )

UAB Campus
IAE-CSIC
E-08193 Bellaterra, Barcelona 08193
Spain
0034935806612 (Phone)

Barcelona Graduate School of Economics (Barcelona GSE) ( email )

Ramon Trias Fargas, 25-27
Barcelona, Barcelona 08005
Spain

Tomás Rodríguez Barraquer

Universidad de los Andes ( email )

Carrera 1a No. 18A-10
Santafe de Bogota, AA4976
Colombia

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