Ideology and Online News
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Chapter in forthcoming NBER book Economics of Digitization, Avi Goldfarb, Shane Greenstein, and Catherine Tucker, editors
News consumption is moving online. If this move fundamentally changes how news is produced and consumed it will have important ramifications for politics. In this chapter the authors formulate a model of the supply and demand of news online that is motivated by descriptive features of online news consumption. The authors estimate the demand model using a combination of microdata and aggregate moments from a panel of Internet users. They evaluate the fit of the model to key features of the data and then use it to compute the predictions of the supply model. They also discuss how a model such as this can inform debates about the effects of the Internet on political polarization and other outcomes of interest.
This paper was revised on April 22, 2014Ideology and Online News, Matthew Gentzkow, Jesse M. Shapiro
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