A Spatial Theory of News Consumption and Electoral Competition. The Review of Economic Studies

Abstract. This paper introduces a model in which rational vot-ers select news sources with ideological positions similar to their own. We nd that extreme media outlets do not in uence polit-ical outcomes, and that new entry always increases the chance that political parties adopt the policy favored by the median voter. A slightly partisan media outlet, which is trusted by the supporters of a party, is more eective than a completely cen-trist one in inducing the party to adopt less partisan policies. In a commercial media market, voter welfare is typically higher under duopoly than under monopoly. JEL classication. D72, L8