Media capture and information monopolization in japan*

We investigate the unique institution of the Japanese press industry called the kisha club system. By tracing through its history, we show how the kisha club system has developed as a result of the government's attempt to control the media, and the media's incentive to use the opportunity provided by the government to limit rivalry within the industry. By providing a simple model that links the distribution of political power and the media capture, we explain why this institutional arrangement has been so persistent in Japan.