Two models for illustrating the economics of media bias in a policy-oriented course

Abstract

Media bias is an important and underexplored feature of the economics of information. In this article, the author outlines two models that can be used to illustrate media bias in a policy-oriented undergraduate economics or public policy course. The models rely on relatively simple and intuitive underlying assumptions and draw on related empirical research. They do not require extensive mathematical derivations, although the models can easily be extended for more mathematically-inclined students. The models are useful in linking economic theory and empirical research in a context that undergraduate students can relate to and in which they often have direct experience. The models also can be used to motivate a range of discussions on media and competition policy.