Ideology and Online News
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.
We are grateful to the project organizers, Shane Greenstein, Avi Goldfarb, and Catherine Tucker, and to the participants for helpful comments during the preparation of the chapter. We are especially grateful to Ben Jones for an outstanding discussion. Wharton Research Data Services (WRDS) was used in preparing this chapter. This service and the data available thereon constitute valuable intellectual property and trade secrets of WRDS and/or its third-party suppliers. This research benefited from funding by the National Science Foundation, the Alfred P. Sloan Foundation, and the Initiative on Global Markets, the George J. Stigler Center for the Study of the Economy and the State, the Ewing Marion Kauffman Foundation, the Centel Foundation / Robert P. Reuss Faculty Research Fund, the Neubauer Family Foundation and the Kathryn C. Gould Research Fund, all at the University of Chicago Booth School of Business.
Jesse M. Shapiro
Since completion of this chapter I have served as a compensated consultant for a firm that may develop an online news product.