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Advertising Caps and News Quality

Author

Listed:
  • Maria Rosa Battaggion

    (University of Bergamo)

  • Alessandro Vaglio

    (University of Bergamo)

Abstract

The paper analyzes, from a theoretical viewpoint, the effects of a switch of advertising resources from press to broadcasting, focusing on the implications for the quality of information provided by media outlets. Our main conclusions are that the alleged impact of advertising on newspapers' quality is ambiguous in the complementary case, while in the substitute case a shift of advertising resources from press to broadcasting would increase newspapers' quality.

Suggested Citation

  • Maria Rosa Battaggion & Alessandro Vaglio, 2020. "Advertising Caps and News Quality," Economics Bulletin, AccessEcon, vol. 40(1), pages 117-127.
    • Handle: RePEc:ebl:ecbull:eb-19-00989
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2020/Volume40/EB-20-V40-I1-P12.pdf
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    References listed on IDEAS

    as
    1. Sendhil Mullainathan & Andrei Shleifer, 2005. "The Market for News," American Economic Review, American Economic Association, vol. 95(4), pages 1031-1053, September.
    2. Jean J. Gabszewicz & Xavier Y. Wauthy, 2003. "The option of joint purchase in vertically differentiated markets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 22(4), pages 817-829, November.
    3. Jean J. Gabszewicz & Didier Laussel & Nathalie Sonnac, 2004. "Programming and Advertising Competition in the Broadcasting Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(4), pages 657-669, December.
    4. Maria Rosa Battaggion & Alessandro Vaglio, 2018. "Newspapers and public grants: A matter of quality," Scottish Journal of Political Economy, Scottish Economic Society, vol. 65(1), pages 27-38, February.
    5. Seabright,Paul & von Hagen,Jürgen (ed.), 2007. "The Economic Regulation of Broadcasting Markets," Cambridge Books, Cambridge University Press, number 9780521874052.
    6. Leroch, Martin A. & Wellbrock, Christian M., 2011. "Saving newspapers with public grants – The effects of press subsidies on the provision of journalistic quality," Information Economics and Policy, Elsevier, vol. 23(3), pages 281-286.
    7. Seabright,Paul & von Hagen,Jürgen (ed.), 2007. "The Economic Regulation of Broadcasting Markets," Cambridge Books, Cambridge University Press, number 9780521696340, November.
    8. Sendhil Mullainathan & Andrei Shleifer, 2005. "The Market for News," American Economic Review, American Economic Association, vol. 95(4), pages 1031-1053, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Advertising cap; Broadcasting; Newspapers; Information quality;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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