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Review of Economics

Jahrbuch für Wirtschaftswissenschaften

Editor-in-Chief: Berlemann, Michael

Ed. by Haucap, Justus / Thum, Marcel

3 Issues per year

Online
ISSN
2366-035X
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Media Bias and Advertising: Evidence from a German Car Magazine

Ralf Dewenter
  • Chair of Industrial Economics, Helmut-Schmidt-University of Hamburg, Holstenhofweg 85, 22043 Hamburg, Germany
  • Email:
/ Ulrich Heimeshoff
  • DICE, Heinrich-Heine-University of Duesseldorf, Universitaetsstr. 1, 40225 Duesseldorf, Germany
  • Email:
Published Online: 2016-02-11 | DOI: https://doi.org/10.1515/roe-2014-0105

Abstract

This paper investigates the existence of a possible media bias by analyzing the impact of automobile manufacturers’ advertisements on automobile reviews in a leading German car magazine. By accounting for both endogeneity and sample selection using a two-step procedure, we find a positive impact of advertising volumes on test scores. The main advantage of our study is the measurement of technical characteristics of cars to explain test scores. Due to this kind of measurement, we avoid serious biases in estimating media bias caused by omitted variables.

Keywords: Car magazines; Media bias; Selection model; Instrumental variable estimation

About the article

Published Online: 2016-02-11

Published in Print: 2014-04-01



Citation Information: Review of Economics, ISSN (Online) 2366-035X, ISSN (Print) 0948-5139, DOI: https://doi.org/10.1515/roe-2014-0105. Export Citation

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