Stigler explains how intellectuals and consultants ply their policy trade honestly
28 Jun 2018 Leave a comment
in comparative institutional analysis, constitutional political economy, economics of bureaucracy, economics of education, economics of media and culture, economics of regulation, George Stigler, history of economic thought, human capital, industrial organisation, labour economics, occupational choice, Public Choice, public economics, rentseeking, survivor principle Tags: consultants, job sorting, public intellectuals
Market research explained
27 Jun 2018 Leave a comment
in economic history, economics of information, economics of media and culture, entrepreneurship, industrial organisation, survivor principle Tags: creative destruction, economics of advertising, entrepreneurial alertness, market research
Monopolistic demons of recent yesteryear slayed by the Guardian
26 Jun 2018 Leave a comment
in economic history, industrial organisation, survivor principle Tags: competition law, creative destruction
Creative destruction in music sales
11 Jun 2018 Leave a comment
in entrepreneurship, industrial organisation, Music, survivor principle Tags: creative destruction
Why Should My Boss Get All the Profits?
01 Jun 2018 Leave a comment
in applied price theory, Austrian economics, entrepreneurship, industrial organisation, labour economics, labour supply, survivor principle Tags: creative destruction, labour theory of value
Net neutrality explained in the spirit of Schumpeter
26 May 2018 Leave a comment
in applied price theory, Austrian economics, economics of regulation, entrepreneurship, industrial organisation, Joseph Schumpeter, law and economics, property rights, Public Choice, rentseeking, survivor principle Tags: antitrust economics, competition law, creative destruction
USA ranked 45th for press freedom by @RSF_en despite no defamation suits for public figures, the 1st Amendment and more newspapers, magazines and social media than you can poke a stick at
30 Apr 2018 Leave a comment
in applied price theory, economics of media and culture, industrial organisation, survivor principle
Armen Alchian and George Stigler both argued that realised profits are the criterion by which the market process selects survivors: those who realise positive profits survive and will grow their market share; those who suffer losses will eventually disappear unless they improve themselves. The surviving media outlets will be those firms that anticipated or adapted fastest to the current and future demands of their readers and viewers.
Any media bias is likely to be slightly to the centre-left for the following reasons:
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Young women tend to be one of the most marginal groups of news consumers (i.e., they are the most willing to switch to activities besides reading or watching the news).
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Young women often make more of the consumption decisions for the household so advertisers will pay more to reach this group.
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Since young women tend to be more centre-left, on average, a news outlet may want to slant its coverage that way. Media sell space to advertisers and tailor the way they cover politics to gain more readers and viewers.
Puglisi and Snyder found that:
- Using endorsements of state-level initiatives and referendums, newspapers are located almost exactly with the median voter – the average voter – in their home states.
- Newspapers are moderate relative to interest groups and political parties.
- Although newspapers exhibit some variation in their ideological position, they tend to be much closer to the median voter than most interest groups.
- Newspapers appear to be more liberal than voters on social and cultural issues such as gay marriage, but tend to be more conservative on economic issues such as the minimum wage.
- On average, the news and editorial sections have almost identical partisan positions.
Positive profits accrue to media outlets that are better at serving their readers and viewers than their competitors. Their lesser rivals will lose money, exhaust their retained earnings and fail to attract further investor support.
Remember MySpace?
15 Apr 2018 Leave a comment
in entrepreneurship, industrial organisation, survivor principle Tags: competition law, creative destruction
HT Lorenzo Warby
Utopia, you are standing in it! 
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