The Economic Analysis Of Media Choice Behavior

As the fourth media, internet brings large attack and competition to the old media, just as newspaper, television and so on. The consumer will choose the most usefulness media after he compares the different media. We studied the factors which influences the consumer utility when he chooses the media. Basing on this, we studied how the factors such as consumer individual characteristics, income, the price of media, the characteristic of media and network externality influence the media choice behavior of the consumer.Firstly, the theories and the empirical of consumer choice behavior, consumer media choice behavior at home and abroad, discrete choice model were reviewed. We emphasized on building the theory framework of consumer media choice behavior, put forward the relation model between media choice and the influence factors and carried out an empirical research on the relation model.Methods such as Survey and discrete choice model were applied in the paper, and the samples were mainly collected from students and residents in Chongqing. We determined the index by small specimen, and obtained the empirical data by large specimen. After building discrete choice model and analyzing data, we tested the influence factors to media choice. At last, we applied a Bayesian game theory model to explain the switch decisions between the old media and the new media, and obtained an unique Bayesian Nash Equilibrium. The parameter analysis of the Bayesian Nash Equilibrium reveals that when the old media has abundant users, the market has strong network effect and consumers individually differ a lot, it will prevent the consumer to choose the new media.The conclusions of this paper are when the consumer chooses media to get news, the price of media has negative impact on consumer choice; media easy accepting, media personal integrity and network externality have positive impacts on consumer's choice. And the other factors have little impact on consumer's choice. Combining the theory explanation, the paper proposed some suggestion about the competition among three media and providing news.