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2) In our model with exogenous qualities, the case for an "advertising-free" publicly owned platform is associated to socially harmful advertising, whereas in the model of endogenous qualities, González-Maestre and Martínez-Sánchez (2012) obtain cases where an "advertising-free" publicly owned platform is optimal even if advertising is socially beneficial.
Intuitively, if the quality differential is large, platform 1's audience is very large and it has great interest in reducing its level of harmful advertising.
This time, the Parliament wants to protect minors from violence, hatred, terrorism and harmful advertising in particular.
For the private duopoly to be socially preferred to a mixed duopoly we require either (i) the combination of socially harmful advertising (k 1) and a negative quality differential (region D) or (ii) the combination of socially beneficial advertising (k 1) and a positive quality differential (region B).
In addition, any of the following conditions ensures that the mixed duopoly will be socially preferred to a private duopoly: (iii) socially harmful advertising, combined with a positive quality differential (region A) or (iv) socially beneficial advertising, combined with a low quality differential (region C).
When it comes to addressing our broken food system with progressive pricing on junk foods, or better supporting school breakfast programs, or limiting harmful advertising of unhealthy foods aimed at our kids, there is no question.
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In particular, we find that the greater the public platforms' quality differential and the higher the relative harmful effect of advertising, the more likely it is that an "advertising-free" public platform is optimal.
Further, they state that research recommendations have been adopted to help counter the potential harmful effects of advertising on children, particularly children ages 8 and younger who lack the cognitive ability to recognize advertising's persuasive intent.
The American Psychological Association is joining the debate on the potentially harmful effects of advertising on children by recommending that the government restrict marketing to those younger than 7 or 8 because they are unable "to recognize advertising's persuasive intent".
"Having direct and indirect experience of the ASA throughout my career, both as a marketer and a campaigner for children's rights, I've admired its commitment to and effectiveness in tackling misleading, harmful or irresponsible advertising," said Bailey.
But limiting harmful fast food advertising, encouraging better nutritional choices and promoting healthier lifestyles should be cornerstones of a national strategy to reverse obesity.
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