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from the the-one-who-pays-the-piper-calls-the-tunes dept.
Media Corruption? Car Safety Recalls Reported Less When Manufacturers Advertise More:
A new study looked at the relationship between advertising by car manufacturers in U.S. newspapers and news coverage of car safety recalls in the early 2000s. The study found that newspapers provided less coverage of recalls issued by manufacturers that advertised more regularly in their publications than of recalls issued by other manufacturers that did not advertise, and this occurred more frequently when the recalls involved more severe defects.
[...] "Because media coverage affects a variety of outcomes, it's vital that news outlets provide unbiased and accurate information to consumers so they can make well-informed decisions," says Ananya Sen, assistant professor of information systems and economics at Carnegie Mellon University's Heinz College, who coauthored the study. "Our findings demonstrate a robust supply-side bias due to advertising revenue, one that may be quite dangerous."
Advertising accounts for nearly 80 percent of newspapers' total revenue in the United States, with total ad spending by the automotive sector surpassing $20 billion in 2006. The study's authors contend that newspapers' reliance on advertising raises concerns that editorial decisions may be vulnerable to the influence of advertisers, especially large ones.
[...] The study concluded that newspapers provided less coverage of recalls from manufacturers that bought more advertising in the previous two years. Specifically, higher spending on advertising was associated with a lower probability that the newspaper published any article on the recalls, and for those newspapers that did publish information about recalls, fewer articles were published. The bias was strongest when small newspapers published ads from local car dealers. The effect was stronger for recalls that involved a large number of vehicles and that involved more severe defects.
[...] "The vulnerability of newspapers to be influenced by advertisers and the role of market structure have implications for policymakers," explains Graham Beattie, assistant professor of economics at Loyola Marymount University, who coauthored the study. "Regulators should formulate rules that limit such conflicts of interest through policies such as limiting concentration of media ownership and encouraging competition between media outlets."
Journal Reference:
Advertising Spending and Media Bias: Evidence from News Coverage of Car Safety Recalls [$], Management Science (DOI: 10.1287/mnsc.2019.3567)
Interesting study but it's looking at data that's at least 10 years old. It would be interesting to see the same study using more recent data.
(Score: 2) by RS3 on Friday May 29 2020, @05:31PM
IIRC there have been several large-scale tire problems over the years. In at least one case the tire manufacturer blamed the car manufacturer for underinflation. I didn't follow it enough to know who won out, and what the true facts are. I just know to buy tires with 41 or 44 PSI max ratings- they're much better built than 35 PSI max tires, and run them close to that spec, depending on wear patterns of course, but never much lower.
My best tires ever were rayon belted- no steel. Once on a plane I happened to sit next to a major tire company executive, and he intimated that steel belts are horrible, that steel and rubber don't adhere well, flex differently, and generally don't get along well, but that advertising causes the public to believe that steel belting is so much better. For all I know he might have been involved in one of the major cases / lawsuits.
I've had a couple of tires separate rubber from steel. The exposed steel belts were shiny- no rubber on them. Probably had been rubbing away for many miles before the whole thing failed.
All that said, steel belts are probably a good thing when everything works well.