Quality competition among platforms: a media market case

Abstract

We provide a two-sided model in a vertical di¤erentiation context. We solve the model and we calculate the equilibrium in terms of advertising levels, subscription fees and qualities provision, both in duopoly - two platforms of di¤erent quality - and in monopoly case. We would like to investigate how competition among platforms and the entry deterrence behavior might affect the equilibrium, with particular focus on quality provision