The Effect of Monopoly on the News: A Before and After Study of Two Canadian One Newspaper Towns

Trim, Katherine; Pizante, Gary; Yaraskavitch, James

doi:10.22230/cjc.1983v9n3a305

Canadian Journal of Communication

1983

DOI: 10.22230/cjc.1983v9n3a305

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The Effect of Monopoly on the News: A Before and After Study of Two Canadian One Newspaper Towns

Katherine Trim¹,

Gary Pizante²,

James Yaraskavitch³

Abstract: An analysis if the effect of newspaper industry competition on the news, specifically local government news. A significant decline in the quality and quantity of the news was noted.

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Competition, Circulation and Advertising

Lacy¹,

Martin²

2004

Newspaper Research Journal

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LlCYis a professo r in the School of Jou rnalism at Michi gan State Umvcrstty. Hi.' has resea rch ed media economics for mo re than 20 years and has prod uced mort' tha n 80 refereed journal ar ticles an d conference pap ers on the top ic. s!acy@msu,l'du. Ma rti n is an a~sis t.lIll pWieSS\lr in till' Grady Co llege of Jou rnalism and Mass Comm unica tion at the University of Gt'orgia, and holds a doctorate from Michiga n Sta te University. I lis resea rch inter est s inclu de eco nom ic an d organiz<1ti(lIla! influences Oil the beha vior of newspapers and ot her me d ia orga nizations. I it' wo rked for 12 years as a reporter and edi tor at Tilt' Tampa Trilllll1t'. hjmart in®Uga.edu .

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Competition, Circulation and Advertising

Lacy¹,

Martin²

2004

Newspaper Research Journal

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Effects of Taxes and Subsidies on Media Services

Kind

Møen

2014

SSRN Journal

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We start out reviewing the justification for press subsidies. The social value of journalism can be larger than what the newspapers are able to extract because of knowledge externalities, public good characteristics of investigative journalism and non-appropriability of consumer surplus. A free market will then underinvest in journalism. Problems related to economies of scale and scope further imply that the number of newspapers and their circulations may be too small, while advertising can give newspapers too strong incentives to aim for the mass market. According to the media economics literature, a preferential VAT regime provides higher differentiation incentives for existing newspapers, while a tax deduction for editorial expenses is well suited to increase journalistic investments. Micro economic theory further indicates that fixed transfers is the most efficient instrument to reduce entry barriers and avoid newspaper mortality, and that a subsidy per copy sold will increase circulation. We end the article by summarizing empirical evidence on the effects of media support.

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The Effect of Monopoly on the News: A Before and After Study of Two Canadian One Newspaper Towns

Abstract: An analysis if the effect of newspaper industry competition on the news, specifically local government news. A significant decline in the quality and quantity of the news was noted.

Cited by 2 publications

References 1 publication

Competition, Circulation and Advertising

Competition, Circulation and Advertising

Effects of Taxes and Subsidies on Media Services

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