Content and Advertising: TV Media Competition in a Mixed-duopoly Market

This paper investigates the advertising intensity and channel content in a mixed-duopoly market. We find that there is less content difference in a mixed-duopoly market than in a private-duopoly market. The private channel is worse off when it competes against a state channel since the private channel faces more intense competition in content and viewing price. We also extend our analysis to social welfare investigation and policy implications. We show that the mixed-duopoly market is socially preferred to the private-duopoly market. It is also found that government intervention by using state channel only cannot reach social optimum.