WORKING PAPER · NO. 2019-81 Media Freedom in the Shadow of a Coup Raphael Boleslavsky, Mehdi Shadmehr, and Konstantin Sonin JANUARY 2019 5757 S. University Ave. Chicago, IL 60637 Main: 773.702.5599 bfi.uchicago.edu Media Freedom in the Shadow of a Coup Raphael Boleslavsky∗ Mehdi Shadmehry Konstantin Soninz Abstract Popular protests and palace coups are the two domestic threats to dictators. We show that free media, which informs citizens about their rulers, is a double-edged sword that alleviates one threat, but exacerbates the other. Informed citizens may protest against a ruler, but they may also protest to restore him after a palace coup. In choosing media freedom, the leader trades off these conflicting effects. We develop a model in which citizens engage in a regime change global game, and media freedom is a ruler's instrument for Bayesian persuasion, used to manage the competing risks of coups and protests. A coup switches the status quo from being in the ruler's favor to being against him. This introduces convexities in the ruler's Bayesian persuasion prob- lem, causing him to benefit from an informed citizenry. Rulers tolerate freer press when citizens are pessimistic about them, or coups signal information about them to citizens. Keywords: authoritarian politics, media freedom, protest, coup, global games, Bayesian persuasion, signaling JEL Classification: H00, D82 ∗Department of Economics, University of Miami, 5250 University Dr., Coral Gables, FL 33146. E-mail:
[email protected] yHarris School of Public Policy, University of Chicago, and Department of Economics, University of Calgary, 1155 East 60th Street, Chicago 60637.