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Review of Economics

Jahrbuch für Wirtschaftswissenschaften

Editor-in-Chief: Berlemann, Michael

Ed. by Haucap, Justus / Thum, Marcel

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Media Bias and Advertising: Evidence from a German Car Magazine

Ralf Dewenter / Ulrich Heimeshoff
Published Online: 2016-02-11 | DOI: https://doi.org/10.1515/roe-2014-0105


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, Volume 65, Issue 1, Pages 77–94, ISSN (Online) 2366-035X, ISSN (Print) 0948-5139, DOI: https://doi.org/10.1515/roe-2014-0105.

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© 2014 by Lucius & Lucius, Stuttgart.

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Ralf Dewenter and Ulrich Heimeshoff
Applied Economics Letters, 2015, Volume 22, Number 14, Page 1150

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