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MARKET STRUCTURE AND MEDIA DIVERSITY
Author(s) -
Hiller R. Scott,
Savage Scott J.,
Waldman Donald M.
Publication year - 2015
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/ecin.12153
Subject(s) - diversity (politics) , welfare , multiculturalism , economics , advertising , media bias , consumer demand , market structure , business , microeconomics , political science , market economy , politics , law
We estimate a mixed logit model of the demand for local news service. Results provide evidence that suggest the representative consumer values more diverse news, more coverage of multicultural issues, and more information on community news, and has a distaste for advertising. Demand estimates are used to calculate the impact on consumer welfare from a marginal decrease in the number of independent television stations that lowers the amount of diversity, multiculturalism, community news, and advertising. Consumer welfare decreases, but the losses are smaller in large markets. For example, small‐market consumers lose $45 million annually while large‐market consumers lose $13 million . ( JEL C9, C25, L13, L82, L96)