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September 20, 2004

Dissecting the Media: Trust and Transactions

The legacy media in general are threatened by audience loss to the Internet and citizens' media, and Rathergate is merely the latest example of a credibility apparently sinking by the day,

There's been ample analysis from the perspectives of professional media, journalism, and politics. But from an investor's perspective, there's the possibility that one of the major value chains in modern society - media and advertising - will be rearranged, at least in part. That makes an economic analysis of the issue rather interesting.

I'll start from the perspective of transaction cost economics as originally invented by Ronald Coase. If you haven't encountered it, go read a bit. Trust me, this is one of the master ideas for understanding the evolution of the Internet.

(Continued at Due Diligence)


Posted by yatta at 02:42 PM