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American Economic Journal:
Microeconomics

ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)

Media Competition and News Diets

  • Charles Angelucci
  • Julia Cagé
  • Michael Sinkinson
American Economic Journal: Microeconomics
vol. 16, no. 2, May 2024
(pp. 62–102)
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Abstract

Technological innovations like broadcast television and the internet challenge local newspapers' business model of bundling their local content with third-party content, such as wire national news. We examine how the entry of television affected newspapers and news diets in the United States. We construct a dataset of newspapers' economic performance and content choices from 1944 to 1964 and exploit quasi-random variation in the rollout of television to show its negative impact in the readership and advertising markets. Newspapers responded by reducing content, particularly local news. We tie this change to increased party vote share congruence between congressional and presidential elections.

Citation

Angelucci, Charles, Julia Cagé, and Michael Sinkinson. 2024. "Media Competition and News Diets." American Economic Journal: Microeconomics 16 (2): 62–102. DOI: 10.1257/mic.20220163

Additional Materials

JEL Classification

  • D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
  • L25 Firm Performance: Size, Diversification, and Scope
  • L82 Entertainment; Media
  • M37 Advertising
  • N42 Economic History: Government, War, Law, International Relations, and Regulation: U.S.; Canada: 1913-
  • N72 Economic History: Transport, Trade, Energy, Technology, and Other Services: U.S.; Canada: 1913-