Working Paper: NBER ID: w23940
Authors: Graham Beattie; Ruben Durante; Brian Knight; Ananya Sen
Abstract: Do news media bias content in favor of advertisers? We examine the relationship between advertising by auto manufacturers in U.S. newspapers and news coverage of car safety recalls. This context allows us to separate the influence of advertisers, who prefer less coverage, from that of readers, who demand more. Consistent with theoretical predictions, we find that newspapers provide less coverage of recalls by their advertisers, especially the more severe ones. Competition for readers from other newspapers mitigates bias, while competition for advertising by online platforms exacerbates it. Finally, we present suggestive evidence that lower coverage increases auto fatalities.
Keywords: Advertising; Media Bias; Car Safety Recalls
JEL Codes: L10; L82; M21; M37
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Advertising Spending (M37) | Recall Coverage (D18) |
| Recall Severity (D18) | Recall Coverage (D18) |
| Competition among Newspapers (L13) | Advertising Bias (M38) |
| Local Vehicle Ownership (R48) | Recall Coverage (D18) |
| Recall Coverage (D18) | Auto Fatalities (R48) |