Media bias, slant regulation, and the public-interest media

Abstract

This study addresses the role of government in reducing media bias that arises from the demand side. Introducing a public-interest media outlet reduces the equilibrium slants that would otherwise exist under laissez-faire. Subsidy for the truthful report and price regulation are designed to effectively remedy media bias. The socially optimal subsidy policy can reduce both slant and media prices. © 2014 Springer-Verlag Wien.