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Media versus Special Interests

Author

Listed:
  • Alexander Dyck
  • David Moss
  • Luigi Zingales

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

  • Alexander Dyck & David Moss & Luigi Zingales, 2008. "Media versus Special Interests," NBER Working Papers 14360, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:14360
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    References listed on IDEAS

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    More about this item

    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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