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Media and Policy

Author

Listed:
  • Faruk Gul

    (Princeton University)

  • Wolfgang Pesendorfer

    (Princeton University)

Abstract

We identify a mechanism through which media concentration reduces political polarization and media competition (via specialization) increases polarization. This mechanism may help explain the patterns of US Congressional polarization. To avoid offending potential customers, a concentrated media seldom makes clear-cut endorsements and, as a result, provides little information. This leads to the convergence of party policy positions. Under competition, media companies specialize to a narrow ideological spectrum and, as a result, can offer strong endorsements without risk of offending customers. This leads to the divergence of party’s policy positions, that is, political polarization.

Suggested Citation

  • Faruk Gul & Wolfgang Pesendorfer, 2012. "Media and Policy," Working Papers 2012-2, Princeton University. Economics Department..
    • Handle: RePEc:pri:econom:2012-2
    as

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    File URL: http://www.princeton.edu/~pesendor/media.pdf
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    References listed on IDEAS

    as
    1. Timothy Feddersen & Wolfgang Pesendorfer, 1997. "Voting Behavior and Information Aggregation in Elections with Private Information," Econometrica, Econometric Society, vol. 65(5), pages 1029-1058, September.
    2. Jimmy Chan & Wing Suen, 2008. "A Spatial Theory of News Consumption and Electoral Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(3), pages 699-728.
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    4. Aragones, Enriqueta & Palfrey, Thomas R., 2002. "Mixed Equilibrium in a Downsian Model with a Favored Candidate," Journal of Economic Theory, Elsevier, vol. 103(1), pages 131-161, March.
    5. Martin J. Osborne, 1995. "Spatial Models of Political Competition under Plurality Rule: A Survey of Some Explanations of the Number of Candidates and the Positions They Take," Canadian Journal of Economics, Canadian Economics Association, vol. 28(2), pages 261-301, May.
    6. Matthew Gentzkow & Edward L. Glaeser & Claudia Goldin, 2006. "The Rise of the Fourth Estate. How Newspapers Became Informative and Why It Mattered," NBER Chapters, in: Corruption and Reform: Lessons from America's Economic History, pages 187-230, National Bureau of Economic Research, Inc.
    7. Bernhardt, Dan & Krasa, Stefan & Polborn, Mattias, 2008. "Political polarization and the electoral effects of media bias," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1092-1104, June.
    8. Sendhil Mullainathan & Andrei Shleifer, 2005. "The Market for News," American Economic Review, American Economic Association, vol. 95(4), pages 1031-1053, September.
    9. Gul, Faruk & Pesendorfer, Wolfgang, 2009. "Partisan politics and election failure with ignorant voters," Journal of Economic Theory, Elsevier, vol. 144(1), pages 146-174, January.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Media; Party Policies;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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