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Economic Analysis of the Digital Economy$
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Avi Goldfarb, Shane M. Greenstein, and Catherine E. Tucker

Print publication date: 2015

Print ISBN-13: 9780226206844

Published to Chicago Scholarship Online: September 2015

DOI: 10.7208/chicago/9780226206981.001.0001

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PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 27 June 2022

Ideology and Online News

Ideology and Online News

(p.169) 6 Ideology and Online News
Economic Analysis of the Digital Economy

Matthew Gentzkow

Jesse M. Shapiro

University of Chicago Press

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.

Keywords:   news, internet, echo chambers

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