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Accordingly, in the second stage-game, “broadcasting firms face a trade-off: either they capture large audiences by keeping the advertising rate low, or they stuff programs with advertising interruptions, thereby losing audience in favour of their competitor” (Vaglio, p. 35). Thus, the second stage-game in which advertising rates are decided, closely resembles the second stage-game of a spatial competition model in which, after having decided about their lo- cation, firms decide about their prices. There also, a low price increases the size of the market share while, conversely, a higher price tends to decrease it. Finally, in the third stage of the sequential game, TV-channels now decide non cooperatively about...