Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282426 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10738
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Media content is an important privately supplied public good. While it has been shown that contributions to a public good crowd out other contributions in many cases, the issue has not been thoroughly studied for media markets yet. We show that in a standard model of commercial media bias, qualities of media content are strategic complements, whereby investments into quality crowd in further investments and engage competitors in a race to the top. Therefore, financially strong public service media can mitigate commercial media bias: the content of commercial media can be more in line with the preferences of the audience and less advertiser-friendly in a dual (mixed public and commercial) media system than in a purely commercial media market.
Subjects: 
commercial media bias
public service media
advertising two-sided markets
supermodular games
strategic complements
public goods
JEL: 
C70
H41
L13
L51
L82
Document Type: 
Working Paper
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