We consider a model with two competing private TV-channels producing each, at a fixed cost F, a separate program which consists of a mixof entertain- ment (sports, varieties, .) and culture (classic music, theater, movies, .). The two companies also sell advertising time to announcers to promote their products or the products of their customers. For each channel, the total broad- casting time, programs plus advertising, is equal to T. TV-viewers have varying tastes for the “program-mixes” offered by the channels. In order to represent this diversity among consumers’ tastes for the programs, we assume that the set of mixes is the unit interval [0, 1], with 0 corresponding.
