Miguel González-Maestre, Francisco Martínez Sánchez
We consider the role of a publicly-owned platform and program quality in the free to air broadcasting industry. We compare the equilibrium levels of advertising under private and mixed duopoly competition, and show that the connection between program quality and advertising incentives are drastically different between both scenarios.
We also consider the welfare implications of our analysis and obtain policy implications regarding the optimal government�s intervention in the broadcasting industry.
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