Regulating Media Bias: Subsidies Versus Price-Caps

Abstract This study examines the impact of price-cap regulation and subsidies for truthful reporting on media bias in a duopolistic market with both traditional and digital media. While subsidies reduce bias and promote balanced news coverage, price-cap regulation exacerbates online polarization and displaces traditional media. These findings provide valuable insights for policy discussions on fact-checking, reporting standards, and social media regulation.