Handbook of Media Economics, vol 1A

INTRODUCTION

Media markets are special in many ways, and they take on an importance that is much

larger than their accounting contribution to GDP. First, on the consumer side, is the

astonishingly large fraction of leisure time devoted to them. Second, on the advertiser

side, they provide a conduit for firms to get consumers to buy goods, which supports

employment in the advertising industries and may foster economic growth by enabling

innovations to be brought quickly and profitably to market and rewarding risk-taking.

Third, the media plays a very special role in providing information on current events

and politics. However, the media by necessity systematically filters and biases this infor-

mation. How much and which information is transmitted ...