Abstract:This paper develops a model of two-sided market with negative externality,to study the duopoly competition between two media firms that are both advertising-financed and consumer-financed,which provides us with an insight of describing functional mechanism,effect of differentiated strategies and equilibrium market structure.It is shown that the lower the equilibrium prices of consumers are,the larger the amounts of consumers,visiting media,and higher the prices and the larger the amounts of adve...