Global Journal of Commerce & Management Perspective
Open Access

ISSN: 2319-7285

Steven C. Tarr

Department of Commerce and Management, Harvard University, Cambridge, United States

  • Review Article   
    Market Failure: The Odd Economics of Free News
    Author(s): Steven C. Tarr*

    The free news market has failed. Why do consumers tolerate low quality news while they do not tolerate low quality cars? This research examines that question through an extension of economic principles, consumer and supplier behavior, information asymmetry, technology, and unique aspects of price and quality. Amidst a glut of dubious information driven by social media, websites, and news outlets, this paper provides an economic framework about modern news deficiencies. High speed production and consumption of facts and opinions overwhelm the individual’s cognitive processing limits. Similar to Gresham’s law, bad information drives out good. If consumers perceive news is free and quality is questionable, then consumer and social economic benefit is zero. All economic benefit goes to the supplier and the free market under performs. Seven factors drive th.. View More»
    DOI: 10.35248/2319-7285.23.12.026

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