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Besides horizontal differentiation, hospitals may also vary in quality of services offered.
In this study, we develop a model in which a publicly owned platform competes with a private one in a free-to-air broadcasting industry in which programmes are differentiated in two dimensions: content (horizontal differentiation) and quality (vertical differentiation).
A mixed duopoly incorporating advertising regulation in the broadcasting industry is considered by Stühmeier and Wenzel (2012) in the context of a Hotelling model including horizontal differentiation.
Various scenarios, such as monopoly pricing or horizontal differentiation are considered.
Focusing on eco-label standards and using a Hotelling-type horizontal differentiation model, we identify standards-specific issues for and characterize primary barriers to eco-labeling.
This paper argues that two factors may contribute to the extent of cream-skimming: (i) degree of horizontal differentiation between public and private options when preferences are heterogeneous; (ii) whether contract design encourages choice of private insurance before information about risk is revealed.
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However, both traditional and new markets have changed and are still changing rapidly, with both vertical and horizontal differentiations that play a role in featuring the market (Carbone et al. 2014).
According to this figure, for any given level of quality differential, a greater degree of horizontal product differentiation makes it more likely that a mixed duopoly is optimal.
Few papers consider the existence of a public-owned firm in a model of horizontal product differentiation.
Most of these previous contributions focus on the combination of advertising and horizontal product differentiation among private platforms in two-sided markets.
However, whereas these authors focus on the effects exerted by the degree of horizontal product differentiation on the advertising comparisons between the private platform and publicly owned platform, our model considers the role of both horizontal and vertical (quality) differentiation explicitly.
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