Template-Type: ReDIF-Paper 1.0
Title: Can Media Pluralism Be Harmful to News Quality?
Author-Name: Federico Innocenti
Author-Email: finnocen@mail.uni-mannheim.de

Classification-JEL: D82, D83, L82
Keywords: Bayesian Persuasion, Competition, Echo Chambers, Heterogeneous Priors, Limited Attention, Media Pluralism

Abstract: I study the effect of polarization and competition on information
provision. With a single expert who faces decision-makers with het-
erogeneous priors, the expert solves a trade-off between persuading
sceptics and retaining believers. With high polarization, an expert
has incentives to supply low-quality information to leverage believers'
credulity. With multiple experts with opposite biases, competition is
harmful if attention is limited. Unbiased and Bayesian decision-makers
rationally devote attention to like-minded experts. Echo chambers
arise endogenously, whereas decision-makers would be better informed
in monopoly. My model can rationalize the spread and persistence of
conspiracy theories and fake news.

Note: 
Length: 45
Creation-Date: 2021-05
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp298
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2021_298v2