ABSTRACT
In Chapter 1, the media economy was de ned as the study of how media fi rms and industries function across different levels of activity (e.g., global, national, household, and individual) in tandem with other forces (e.g., globalization, regulation, technology, and social aspects) through the use of theories, concepts, and principles drawn from macroeconomic and microeconomic perspectives. This chapter focuses on the use of theories to help us understand the media economy. Economics is considered a part of the social sciences, and in science theories are used to understand the relationship of different phenomena to one another. Theories are typically thought of as abstractions; a theory is not something tangible that you can pick up or hold. Theories are used in the sciences for many purposes, such as testing empirical observations, evaluation, and prediction. Theories are used to answer research questions, test a hypothesis, and build a base of knowledge about different phenomena. Scholars or scientists share their knowledge and research on different theories through venues like conferences and symposiums,
publications (books and scholarly journals), informal networks and learned societies, and the Internet. Theories form a backbone or foundation for every area of science. Theories help to organize a eld of study, identify key concepts, understand patterns and trends, and clarify research assumptions. The media economy is an abstraction. Therefore, we need to understand the theories we can use in order to understand how the media economy operates and functions in a social system. That is the goal and purpose of this chapter.
