Our first set of results shows that firms will tend to distort information to make it conform with consumers' prior beliefs. To see why, consider that a noisy or inaccurate signal is more likely to produce reports that contradict the truth. An agent who has a strong prior belief about the true state of the world will therefore expect inaccurate information sources to contradict that belief more often than accurate ones. Suppose, for example, that a newspaper reports that scientists have successfully produced cold fusion. If a consumer believes this to be highly unlikely a priori, she will rationally infer that the paper probably has poor information or exercised poor judgment in interpreting the available evidence. A media firm concerned about its reputation for accuracy will therefore be reluctant to report evidence at odds with consumers' priors, even if they believe the evidence to be true. The more priors favor a given position, the less likely the firm becomes to print a story contradicting that position.In the real world, of course, bias does result from slanted reporters or political pressure from on high (David Schuster's tell-all about his time at Fox offers one example), or canny politicians gaming the "he-said she-said" system. But I take it the point here is that even if you removed all these factors and assumed benign motives, bias could still occur. On Gentzkow and Shapiro's model, more competition will cut away at this problem, since media firms who care about truthfulness will worry about competitors exposing their distortions. That I doubt. The world of blogs is an extremely competitive, even if imperfectly, and yet distortions and bias happen all the time. Even—*gasp*—on the site you're currently reading...