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Optimal Advertorial Allocation and Contract Design of a Multichannel Networks Company on Video Sharing
Platforms

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and

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�� � ���� � ��� � � � �(� � ��� � �)
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By solving the system of equations, we obtain = . If
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= , = . We know that 2 ( 3
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(� �� � � )(�� �� � � )
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) < if < < . As we assume that
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< and � � � < < � � � , we have
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< , namely > .
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To show that there exist feasible variable combinations, we take = .5, =
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.2, = 2, = . as an example. It’s obvious that all the variables are in feasible
regions and < . Q.E.D.
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Proof of Proposition 5. As the marginal probabilities remain unchanged, the
equilibrium effort decisions are also unchanged. However, because the joint
probabilities have been changed, the MCN’s contract design problem is changed to

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