Advertising Spending and Media Bias: Evidence from News Coverage of Car Safety Recalls


Ananya Sen
Ananya Sen
  • Speaker
Sloan School of Management, Massachusetts Institute of Technology

Event Information

Type
Research Seminar
Programme
Logistics
Date
Tue. 14 Nov. 2017
Contact
Cheryl Blok
Time
12:00-13:15
Location
T07-67


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.

 Bio: 

Ananya Sen is a Postdoctoral Associate at the MIT Sloan School of Management.His research interests include the economics of the media, social media, the internet and more broadly the digital economy. He mainly uses empirical techniques, often backed by simple theoretical models, to answer research questions.  He received a Ph.D in Economics from the Toulouse School of  Economics.   Before  moving  to  Toulouse,  he  did  the  Economics  Tripos  at  Cambridge University, prior to which he obtained a B.A. (Honors) in economics at St. Stephen’s College, Delhi.

Rodrigo Belo
  • Coordinator
Cheryl Blok
Cheryl Blok
  • Coordinator