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CNN Effect

   Also found in: Wikipedia 0.01 sec.
CNN Effect
A theory stating that the market suffers during intense news coverage of a major event because persons stay home and watch the coverage, rather than go out and buy goods and services. This is a controversial theory and little evidence documents it. However, its effect, if any, would likely impact services more negatively than goods. For example, watching a natural disaster on television may prevent one from going to the cinema and watching a film about a natural disaster. It will not, however, prevent one from buying groceries. More generally, the CNN effect refers to the idea that 24-hour cable news has given the public the impression, but not necessarily a correct one, that it is more engaged with current events.


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John Tiffany's skillful direction blends battlefield realism with multimedia CNN effects and abstract movement (choreographed by Steve Hoggett).
Perhaps the most commonly known citation of the CNN Effect is the involvement of the United States in providing aid and military support to Somalia in 1992 to 1993 as a result of the continuous and provocative exposure of the starving children and the atrocities of war (Brookings Institution, 2002).
17) The CNN effect not only highlighted undesired effects but arguably added second- and third-order undesired effects that would not have existed otherwise.
 
 
 
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