In this paper, we analyze the equilibrium amount of entertainment in news coverage of newspapers and television stations. We find that a shift in the inclination to read, expressed by a shift in the (psychological) distance costs, induces both media outlets to incorporate more entertaining...

Die Webwirtschaft läuft Gefahr, ähnlich wie die Finanzwirtschaft, in sich zusammenzufallen. Gegen das Hauptübel, die Gratisangebote und die Jagd nach ihnen, geht die Autorin schonungslos vor - alles ökonomisch begründet.

Empirical evidence suggests that people dislike ads in media products like TV programs. In such situations standard economic theory prescribes that the advertising volume can be optimally reduced by levying a tax on ads. However, making use of recent advances in the theory of Industrial...