Advertising spending and media bias: evidence from news coverage of car safety recalls

Do mass media bias content in favor of advertisers? If so, what market conditions limit or exacerbate this bias? We examine the relationship between advertising by auto manufacturers in U.S. newspapers and news coverage of car safety recalls between 2000 and 2014. This context allows us to separate...

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Autores: Beattie, Graham, Durante, Ruben, 1978-, Knight, Brian, Sen, Ananya
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2020
País:España
Institución:Universitat Pompeu Fabra
Repositorio:Repositorio Digital de la UPF
OAI Identifier:oai:repositori.upf.edu:10230/46773
Acceso en línea:http://hdl.handle.net/10230/46773
http://dx.doi.org/10.1287/mnsc.2019.3567
Access Level:acceso abierto
Palabra clave:Media bias
Advertising Newspapers
Car manufacturers
Safety recalls
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spelling Advertising spending and media bias: evidence from news coverage of car safety recalls Beattie, Graham Durante, Ruben, 1978- Knight, Brian Sen, Ananya Media bias Advertising Newspapers Car manufacturers Safety recalls Do mass media bias content in favor of advertisers? If so, what market conditions limit or exacerbate this bias? We examine the relationship between advertising by auto manufacturers in U.S. newspapers and news coverage of car safety recalls between 2000 and 2014. This context allows us to separate the influence of advertisers, who prefer less coverage, from that of readers, who prefer more information about the safety risks associated with the recalls. Consistent with theoretical predictions, we find that newspapers provide less coverage of recalls issued by manufacturers that advertised more regularly on their pages over the previous two years. The effect is especially pronounced for more severe recalls, which are more likely to hurt manufacturers’ reputations. Competition for readers from other newspapers mitigates proadvertiser bias, and competition for advertising by online platforms exacerbates it. We also present suggestive evidence that less news coverage of recalls is associated with more fatal car accidents. The authors thankfully acknowledge financial support from the University of Toronto, Brown University, Barcelona GSE, the Jean Jacques Laffont Digital Chair, MIT IDE, and LIEPP. This project has received funding from the European Union’s Horizon 2020 research and innovation program [Grant 759885]. INFORMS http://hdl.handle.net/10230/46773 http://dx.doi.org/10.1287/mnsc.2019.3567
title Advertising spending and media bias: evidence from news coverage of car safety recalls
spellingShingle Advertising spending and media bias: evidence from news coverage of car safety recalls
Beattie, Graham
Media bias
Advertising Newspapers
Car manufacturers
Safety recalls
title_short Advertising spending and media bias: evidence from news coverage of car safety recalls
title_full Advertising spending and media bias: evidence from news coverage of car safety recalls
title_fullStr Advertising spending and media bias: evidence from news coverage of car safety recalls
title_full_unstemmed Advertising spending and media bias: evidence from news coverage of car safety recalls
title_sort Advertising spending and media bias: evidence from news coverage of car safety recalls
author Beattie, Graham
author_facet Beattie, Graham
Durante, Ruben, 1978-
Knight, Brian
Sen, Ananya
author_role author
author2 Durante, Ruben, 1978-
Knight, Brian
Sen, Ananya
author2_role author
author
author
topic Media bias
Advertising Newspapers
Car manufacturers
Safety recalls
topic_facet Media bias
Advertising Newspapers
Car manufacturers
Safety recalls
description Do mass media bias content in favor of advertisers? If so, what market conditions limit or exacerbate this bias? We examine the relationship between advertising by auto manufacturers in U.S. newspapers and news coverage of car safety recalls between 2000 and 2014. This context allows us to separate the influence of advertisers, who prefer less coverage, from that of readers, who prefer more information about the safety risks associated with the recalls. Consistent with theoretical predictions, we find that newspapers provide less coverage of recalls issued by manufacturers that advertised more regularly on their pages over the previous two years. The effect is especially pronounced for more severe recalls, which are more likely to hurt manufacturers’ reputations. Competition for readers from other newspapers mitigates proadvertiser bias, and competition for advertising by online platforms exacerbates it. We also present suggestive evidence that less news coverage of recalls is associated with more fatal car accidents.
publishDate 2020
format article
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url http://hdl.handle.net/10230/46773
http://dx.doi.org/10.1287/mnsc.2019.3567
eu_rights_str_mv openAccess
publisher INFORMS
institution Universitat Pompeu Fabra
collection Repositorio Digital de la UPF
reponame_str Repositorio Digital de la UPF
instname_str Universitat Pompeu Fabra
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publishDateSort 2020
author_browse Beattie, Graham
Durante, Ruben, 1978-
Knight, Brian
Sen, Ananya
publisherStr INFORMS
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