Literature Review

In related work, Bhargava & Choudhary [#!Bhargava-Choudhary-2001b!#] and Corbett & Karmarkar [#!Corbett-Karmarkar-1999!#] study the case where an intermediary has the option to charge subscription fees for customers and listing fees for suppliers. However, Bhargava & Choudhary [#!Bhargava-Choudhary-2001b!#] consider only a one-sided network benefit, and their model does not incorporate advertising revenue. Corbett & Karmarkar [#!Corbett-Karmarkar-1999!#] model two-sided network benefits, but assume homogeneous content providers and do not incorporate advertising revenue. Baye & Morgan [#!Baye-Morgan-2001!#] applied a game theoretic model to study a similar question. None of these papers consider the possibility that the gatekeeper may bias its outputs due to payments from content providers. Dewan etal [#!Dewan-etal-2001!#] study the problem faced by a content web sites to balance content and advertising by an infinite horizon control program. Gabszewics etal [#!Gabszewics-etal-1999!#] analyze the case of two TV channels competing in both the audience market and the advertising market. But in both these models, advertising is the only revenue source, hence no trade-off between different resources is considered.