Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300268 
Year of Publication: 
2024
Series/Report no.: 
ZEW Discussion Papers No. 24-043
Publisher: 
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung, Mannheim
Abstract: 
We build a model of the news market where advertisers allocate their ads between a social media platform and a news website. Our objective is to evaluate policy interventions aimed at fostering news creation by transferring revenues from social media to news websites already introduced in Australia, Canada, and Indonesia). We show that social media may voluntarily contribute to news development, but only suboptimally. Beyond a certain level of state-mandated transfer, the social media platform can credibly threaten to remove news content. We provide some guidance on how to design a policy that improves welfare by promoting news creation.
Subjects: 
social media
news quality
platform regulation
news media bargaining code
online advertising
JEL: 
D43
D62
L13
L51
M37
Document Type: 
Working Paper

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