The necessity analysis of accurate news reporting as a public good funded by taxation

Abstract

 Accurate news reporting is very critical to people. However, due to the non-competitive and non-exclusive nature of news products, the price individuals are willing to pay for news is often very low, thus weakening the profit incentive for the media to produce accurate news, namely the market failure. Government funding for media is a viable solution. And it has many benefits. For example, it ensures the adequate supply and sufficient accuracy of news reports. The potential risk of excessive government interference in media coverage can be reduced through public scrutiny, which is analyzed by game theory in the essay.