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The Economics of Badmouthing: Libel Law and the Underworld of the Financial Press in France before World War I

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  • Vincent Bignon
  • Marc Flandreau

Abstract

This article analyzes the economics of “badmouthing” in the context of the pre-1914 French capital market. We argue that badmouthing was a means through which racketeering journals sought to secure property rights over issuers’ reputation. We provide a theoretical study of the market setup that emerged to deal with such problems, and we test our predictions using new evidence from contemporary sources.

Suggested Citation

  • Vincent Bignon & Marc Flandreau, 2010. "The Economics of Badmouthing: Libel Law and the Underworld of the Financial Press in France before World War I," EconomiX Working Papers 2010-18, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2010-18
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    Cited by:

    1. Vincent Bignon & Marc Flandreau, 2012. "The Price of Media Capture and the Looting of Newspapers in Interwar France," IHEID Working Papers 09-2012, Economics Section, The Graduate Institute of International Studies.
    2. Bignon, Vincent & Flandreau, Marc, 2014. "The Price of Media Capture and the Debasement of the French Newspaper Industry During the Interwar," The Journal of Economic History, Cambridge University Press, vol. 74(3), pages 799-830, September.
    3. Bakker, Gerben, 2014. "How they made news pay: news traders’ quest for crisis-resistant business models," Economic History Working Papers 59304, London School of Economics and Political Science, Department of Economic History.
    4. Louis-Sidois, Charles & Mougin, Elisa, 2023. "Silence the media or the story? Theory and evidence of media capture," European Economic Review, Elsevier, vol. 158(C).
    5. Marc Flandreau & Geoffroy Legentilhomme, 2022. "Cyberpunk Victoria: The credibility of computers and the first digital revolution, 1848–83," Economic History Review, Economic History Society, vol. 75(4), pages 1083-1119, November.
    6. Balmer, Roberto, 2013. "Entry and Competition in Local Newspaper Retail Markets - When two are enough," MPRA Paper 54079, University Library of Munich, Germany.
    7. Stephanie Collet & Kim Oosterlinck, 2019. "Denouncing Odious Debts," Journal of Business Ethics, Springer, vol. 160(1), pages 205-223, November.
    8. Oosterlinck, Kim & Collet, Stéphanie, 2016. "Pricing the Odious in Odious Debts," CEPR Discussion Papers 11653, C.E.P.R. Discussion Papers.

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