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x , x 1 2
1.0
0.5
M
x 2
M
x 1
P P
x1 x2
0.0
5 10 15 20
t
Figure 6: Aundience shares =1
a
1 ,a 2
20
15
P P
a 1
a2
a M
2
M
a 1
10
5
0
5 10 15 20
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Figure 7: Advertising =09
case, the advertising levels are smaller in the mixed duopoly for sufficiently
large . Moreoverthisdifference is increasing in . Note also that the public
platform always sets lower level of advertising than the private platform in
the mixed duopoly and this difference is increasing in . Intuitively the public
platform tends to reduce the socially harmful advertising. As a result, for
large the public platform obtains higher audience share than the private one
despite of the fact that it provides lower quality level.
Finally, Figures 10, 11 and 12 illustrate the previous comparisons when
advertising is socially beneficial, assuming =11. The main difference
with respect to the previous cases is that the advertising levels in the mixed
duopoly are greater than in the private one. Moreover the publicly-owned
platform provides higher level of advertising than its private competitor. This
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