Newspapers and public grants: A matter of quality. (1st November 2017)

• Record Type: Journal Article
• Authors: Battaggion, Maria Rosa; Vaglio, Alessandro
• Is Part Of: Scottish journal of political economy. Volume 65:Number 1(2018)
• Page Start: 27
• Page End: 38
• Publication Date: 2017-11-01
• Subjects: Great Britain -- Economic conditions -- 1945-1964 -- Periodicals; Great Britain -- Economic conditions -- 1964-1979 -- Periodicals; Great Britain -- Economic conditions -- 1979-1997 -- Periodicals; 330.9411005
• DOI: 10.1111/sjpe.12152
• Languages: English
• ISSNs: 0036-9292

Abstract

Abstract: The present paper deals with the issue of newspaper subsidies in a framework of endogenous quality provision. We compare monopoly and duopoly cases in a vertically differentiated model. For monopolies we show that a per‐copy subsidy reduces quality. Conversely, in duopolies in the vertically differentiated model, we show that a state subsidy might increase the quality of the low‐quality newspaper and decrease the quality of the high‐quality newspaper.