An economic theory of media brands

Abstract

Information economics suggests that there are fundamental quality dilemmas which affect media markets. This chapter examines whether the hypothesis that media branding can overcome these dilemmas by establishing quality reputation mechanisms can be supported by the economic theory of reputation. Building on this examination this chapter presents a basic economic theory of media brands. Above that it provides insights into the economics of media product bundling, as well as into the very special economics of journalism. However, unlike the standard economic theory of reputation, which is solely based on information economics and game theory, the economic theory of media brands must also take institutional economics into account. The chapter closes with an application of the outlined theory to the question of how the development of the internet affects journalistic media brands.