Since the total population $N = S + I_1 + I_2$ is constant in this model, we can substitute $S = N - I_1 - I_2$
and get two equations for $I_1$ and $I_2$:
$$ \eqalign{\dfrac{dI_1}{dt}&= b1 I_1 (N - I_1 - I_2) - a_1 I_1 = (b_1 N - a_1) I_1 - b_1 I_1^2 - b_1 I_1 I_2\cr
\dfrac{dI_2}{dt} &= b_2 I_2 (N - I_1 - I_2) - a_2 I_2 = (b_2 N - a_2) I_2 - b_2 I_2^2 - b_2 I_1 I_2\cr}$$
If $a_1 b_2 \ne a_2 b_1$, there are three equilibrium points:
- $I_1 = I_2 = 0$, $S = N$
- $I_1 = 0$, $I_2 = N - a_2/b_2$, $S = a_2/b_2$
- $I_2 = 0$, $I_1 = N - a_1/b_1$, $S = a_1/b_1$.
Of course if $a_2/b_2 > N$ or $a_1/b_1 > N$, these are not really possible because you can't have a negative population.
The Jacobian matrix at equilibrium point (1.) is
$$ \pmatrix{b_1 N - a_1 & 0\cr 0 & b_2 N - a_2\cr}$$
The Jacobian matrix at equilibrium point (2.) is
$$ \pmatrix{ (a_2 b_1 - a_1 b_2)/b_2 & 0 \cr
a_2 - N b_2 & b_2 N - a_2\cr} $$
and the Jacobian matrix at equilibrium point (3.) is
$$ \pmatrix{ (a_1 b_2 - a_2 b_1)/b_1 & 0 \cr
a_1 - N b_1 & b_1 N - a_1\cr} $$
Let's say $a_1/b_1 < a_2/b_2$. There are essentially three
possibilities.
If $N < a_1/b_1 < a_2/b_2 $, the only "real" equilibrium point is (1.), and it is stable. The infections always die out as $t \to \infty$.
If $a_1/b_1 < N < a_2/b_2$, the "real" equilibrium points are (1.) and (3.) . (1.) is unstable and (3.) is stable.
Strain 2 dies out as $t \to \infty$, and we end up with strain 1 endemic (unless we started with $I_1 = 0$).
If $a_1/b_1 < a_2/b_2 < N$, we have all three equilibrium points, but (1.) and (2.) are unstable and (3.) is stable.
Again we end up with strain 1 endemic (unless we started with $I_1 = 0$).
The marginal cases where two or more of $a_1/b_1$, $a_2/b_2$ and $N$ are equal are left as an exercise.