Finally, as discussed in the introduction, our model contrasts with the prior literature
where outlets compete for users by reducing ad capacities, where ads are disliked by consumers.
In Anderson and Coate (2005), the advertising prices are always monopoly prices, so the level of
ad capacity is determined by trading off deviations from monopoly levels against increasing the
user base. The ad capacity of other firms does not affect advertising prices. Although we leave
this extension for future work, we can say a few things about what would happen in an extension
to our model where ad capacities are endogenous and consumers dislike ads. In our model the
problem is more complex, since opponent ad capacities do affect advertising prices directly.
Nonetheless, the comparative statics about outlet profits and asymmetric ad capacities suggest