Internet News as a Market for News Lemons

Abstract

This article frames the problem of news dissemination as a problem of the market lemons, analogous to the issue raised by George Akerlof in 1970. Framing news as a mechanism of vetting common knowledge as opposed to entertainment allows one to see that instant common knowledge in the byzantine and uncertain in which humans communicate and live in is unattainable. Given this frame of the problem a potential solution is posited which allows traditional news paper companies to serve and focus on the role of validating news rather than simply creating or capturing it. The most value added service that traditional news organizations can provide is validation of truth and quality assurance.

Keywords: Market for Lemons, Akerlof, Emma Brown, Newspaper Business Models, Innovations, Journalism