This paper explores the role and function of economics in media policymaking and policy analysis. This paper begins with an overview of the distinctive economics of media industries in an effort to demonstrate the importance of focused and specialized economic analysis of these industries. The paper then chronicles the growing role of economics in U.S. media policymaking and examines both the positive and the negative implications of this transition for media policy.

Presented at the Latin American Meeting of the Econometric Society, Santiago, Chile, July, 2004