News media bargaining codes


Sandrini, Luca ; Somogyi, Robert


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URN: urn:nbn:de:bsz:180-madoc-678310
Document Type: Working paper
Year of publication: 2024
The title of a journal, publication series: ZEW Discussion Papers
Volume: 24-043
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: D43 , D62 , L13 , L51 , M37,
Keywords (English): social media , news quality , platform regulation , news media bargaining code , online advertising
Abstract: We build a model of the news market where advertisers allocate their ads between a social media platform and a news website. Our objective is to evaluate policy interventions aimed at fostering news creation by transferring revenues from social media to news websites already introduced in Australia, Canada, and Indonesia). We show that social media may voluntarily contribute to news development, but only suboptimally. Beyond a certain level of state-mandated transfer, the social media platform can credibly threaten to remove news content. We provide some guidance on how to design a policy that improves welfare by promoting news creation.




Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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