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Media versus Special Interests

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  • Zingales, Luigi
  • Dyck, Alexander
  • ,

Abstract

We argue that profit-maximizing media help overcome the problem of "rational ignorance" highlighted by Downs (1957) and in so doing make elected representatives more sensitive to the interests of general voters. By collecting news and combining it with entertainment, media are able to inform passive voters on politically relevant issues. To show the impact this information has on legislative outcomes, we document the effect "muckraking" magazines had on the voting patterns of U.S. representatives and senators in the early part of the 20th century. We also show under what conditions profit-maximizing media will cater to general (less affluent) voters in their coverage, providing a counterbalance to special interests.

Suggested Citation

  • Zingales, Luigi & Dyck, Alexander & ,, 2008. "Media versus Special Interests," CEPR Discussion Papers 6994, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:6994
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    More about this item

    Keywords

    Regulation; Media; Muckraking;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • N41 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: Pre-1913
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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