Journal Article

A Spatial Theory of News Consumption and Electoral Competition

Jimmy Chan and Wing Suen

in The Review of Economic Studies

Published on behalf of Review of Economic Studies Ltd

Volume 75, issue 3, pages 699-728
Published in print July 2008 | ISSN: 0034-6527
Published online July 2008 | e-ISSN: 1467-937X | DOI: http://dx.doi.org/10.1111/j.1467-937X.2008.00495.x
A Spatial Theory of News Consumption and Electoral Competition

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We characterize the optimal editorial positions of the media in a model in which the media influence both voting behaviour and party policies. Political parties are less likely to choose partisan policies when more voters consume informative news. When there are two media outlets, each should be slightly biased relative to its audience in order to attract voters with relatively extreme views. Voter welfare is typically higher under a duopoly than under a monopoly. Two media outlets under joint ownership may provide more diverse viewpoints than two independent ones, but voter welfare is not always higher.

Keywords: D72; L82

Journal Article.  15346 words.  Illustrated.

Subjects: Services ; Analysis of Collective Decision-making

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