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Type | Working Paper |
Scope | Discipline-based scholarship |
Title | How to Regulate Vertical Market Structure in Network Industries |
Organization Unit | |
Authors |
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Language |
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Institution | University of Zurich |
Series Name | Working paper series / Socioeconomic Institute |
Number | No. 102 |
Date | 2001 |
Abstract Text | This paper analyzes the equilibrium outcomes in a network industry under daccess pricing, investment, vertical foreclosureifferent vertical market structures. In this industry, an upstream monopolist operates a network used as an input to produce horizontally differentiated final products that are imperfect substitutes. Three potential drawbacks of market structure regulation are analyzed: (i) double marginalization, (ii) underinvestment, and (iii) vertical foreclosure. We explore the conditions under which these effects emerge and discuss when the breakup of an integrated network monopolist is adequate. |
Official URL | http://www.econ.uzh.ch/wp.html |
PDF File | Download from ZORA |
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