UCLA Comm 160 - Midterm 1 -
Public Good - ANS-Hamilton.
One person's consumption does not diminish another's ability to consume.
Experience Good - ANS-Hamilton.
Product characteristics can only be ascertained/observed upon consumption.
4 Types of Information Demands - ANS-Hamilton.
Consumption, Production, Entertainment, Voting
Consumption - ANS-Information that aids a person in consuming a good. Ex:
Consumers searching for a good movie on Friday evening might buy a newspaper to
get film reviews, viewing times, and theater locations.
Production - ANS-Information that aids a person in producing a good. Ex: a computer
network administrator might subscribe to PC World to get reviews for hardware
purchases.
Entertainment - ANS-Information for entertainment's sake.
Voting - ANS-Information that aids a person in making a decision between two
candidates.
The Free Rider Problem - ANS-Hamilton.
Democracy only works if individuals contribute by voting. However, some people may
choose not to contribute their vote, but still enjoy being a part of the democracy. "Free
riders" may exist as long as others do choose to contribute their vote.
Theory of Rational Ignorance - ANS-A person may refrain from acquiring knowledge
when the cost of educating oneself exceeds the potential benefit that the knowledge
would provide.
The Hotelling Model - ANS-Uses the image of two ice cream vendors on a beach. Can
be used to demonstrate the median voter theorem or the media's market placement.
, Spatial Model Hypothesis - ANS-Hamilton.
[Soft/Med/Hard] news programs will be more prevalent if advertisers value those
viewers more highly.
If programmers pay less for [soft] news, then they will be more likely to program this
type of information.
As the number of channels increases, the number of [soft] news programs will
increase.
The number of [soft] news shows grows as the number of viewers attracted to this
genre increases.
The average rating for [soft] news programs goes down as the number of soft news
programs increases.
The Five Ws of the Information Marketplace - ANS-Hamilton.
Who cares about a particular piece of information?
What are they willing to pay?
Where can media outlets or advertisers reach them?
When is it profitable to provide the information?
Why is it profitable to provide a given amount/type of a news good?
Shared Preferences - ANS-Hamilton.
The degree to which people express a desire for a particular type of news.
Newsworthiness is a function of the number of consumers and their value in the
marketplace.
Commodity - ANS-A product that is bought and sold.
Brand Names - ANS-Groeling. Allows consumers to easily organize information.
McManus. Consumers rely on brand names to judge the quality of news.
Double Commodity - ANS-McManus.
Producer sells information to consumer. Consumer pays with attention. Producer then
sells attention to advertiser. Advertiser funds operation.
Public Attention Market - ANS-McManus - What kind of commodity is news?
Advertisers seek public attention and fund news operations, so news producers are
competing in a public attention market (not a public education market).
Public Good - ANS-Hamilton.
One person's consumption does not diminish another's ability to consume.
Experience Good - ANS-Hamilton.
Product characteristics can only be ascertained/observed upon consumption.
4 Types of Information Demands - ANS-Hamilton.
Consumption, Production, Entertainment, Voting
Consumption - ANS-Information that aids a person in consuming a good. Ex:
Consumers searching for a good movie on Friday evening might buy a newspaper to
get film reviews, viewing times, and theater locations.
Production - ANS-Information that aids a person in producing a good. Ex: a computer
network administrator might subscribe to PC World to get reviews for hardware
purchases.
Entertainment - ANS-Information for entertainment's sake.
Voting - ANS-Information that aids a person in making a decision between two
candidates.
The Free Rider Problem - ANS-Hamilton.
Democracy only works if individuals contribute by voting. However, some people may
choose not to contribute their vote, but still enjoy being a part of the democracy. "Free
riders" may exist as long as others do choose to contribute their vote.
Theory of Rational Ignorance - ANS-A person may refrain from acquiring knowledge
when the cost of educating oneself exceeds the potential benefit that the knowledge
would provide.
The Hotelling Model - ANS-Uses the image of two ice cream vendors on a beach. Can
be used to demonstrate the median voter theorem or the media's market placement.
, Spatial Model Hypothesis - ANS-Hamilton.
[Soft/Med/Hard] news programs will be more prevalent if advertisers value those
viewers more highly.
If programmers pay less for [soft] news, then they will be more likely to program this
type of information.
As the number of channels increases, the number of [soft] news programs will
increase.
The number of [soft] news shows grows as the number of viewers attracted to this
genre increases.
The average rating for [soft] news programs goes down as the number of soft news
programs increases.
The Five Ws of the Information Marketplace - ANS-Hamilton.
Who cares about a particular piece of information?
What are they willing to pay?
Where can media outlets or advertisers reach them?
When is it profitable to provide the information?
Why is it profitable to provide a given amount/type of a news good?
Shared Preferences - ANS-Hamilton.
The degree to which people express a desire for a particular type of news.
Newsworthiness is a function of the number of consumers and their value in the
marketplace.
Commodity - ANS-A product that is bought and sold.
Brand Names - ANS-Groeling. Allows consumers to easily organize information.
McManus. Consumers rely on brand names to judge the quality of news.
Double Commodity - ANS-McManus.
Producer sells information to consumer. Consumer pays with attention. Producer then
sells attention to advertiser. Advertiser funds operation.
Public Attention Market - ANS-McManus - What kind of commodity is news?
Advertisers seek public attention and fund news operations, so news producers are
competing in a public attention market (not a public education market).
