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

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• dc.contributor.author Beattie, Graham
• dc.contributor.author Durante, Ruben, 1978-
• dc.contributor.author Knight, Brian
• dc.contributor.author Sen, Ananya
• dc.date.accessioned 2021-03-15T08:55:04Z
• dc.date.available 2021-03-15T08:55:04Z
• dc.date.issued 2020
• dc.description.abstract 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.en
• dc.description.sponsorship 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].
• dc.format.mimetype application/pdf
• dc.identifier.citation Beattie G, Durante R, Knight B, Sen A. Advertising spending and media bias: evidence from news coverage of car safety recalls. Manage Sci. 2020 May 15;67(2):698-719. DOI: 10.1287/mnsc.2019.3567
• dc.identifier.doi http://dx.doi.org/10.1287/mnsc.2019.3567
• dc.identifier.issn 0025-1909
• dc.identifier.uri http://hdl.handle.net/10230/46773
• dc.language.iso eng
• dc.publisher INFORMS
• dc.relation.ispartof Management Science. 2020 May 15;67(2):698-719
• dc.relation.projectID info:eu-repo/grantAgreement/EC/H2020/759885
• dc.rights © 2020, INFORMS
• dc.rights.accessRights info:eu-repo/semantics/openAccess
• dc.subject.keyword Media biasen
• dc.subject.keyword Advertising Newspapersen
• dc.subject.keyword Car manufacturersen
• dc.subject.keyword Safety recallsen
• dc.title Advertising spending and media bias: evidence from news coverage of car safety recallsen
• dc.type info:eu-repo/semantics/article
• dc.type.version info:eu-repo/semantics/acceptedVersion