Press Concentration and Media Policy in Small Countries

This article deals with the newspaper industry in small states with a big, more powerful neighbouring country where the same language is spoken. Austria and Ireland are used as examples to show the similarities within the different frameworks, the chosen newspaper sector displaying typical characteristics of traditional market failure and providing output with strong political relevance. Therefore public policy measures are even more important than in other industries. An economic analysis of the developments in the newspaper industry (in the two countries especially) is given, followed by a survey and interpretation of recent economic policies as well as media policy options. With an overview of the changes in the newspaper industries in Austria and Ireland as a starting point, the article aims to explore whether and what can be done to hinder or even unravel the observed concentration processes.