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Author: Álvaro E. Bustos Publisher: ISBN: Category : Languages : en Pages : 46
Book Description
In this paper we systematically study the vertical integration and sabotage decisions of a regulated bottleneck monopoly that sells access to independent downstream firms. Our results reconciliate a set of seemingly contradictory findings of the literature. We show that unless the monopoly's subsidiary is implausible more efficient than the independent firms, vertical integration never benefits consumers. Moreover, sabotage may prompt inefficient vertical integration. In addition, we show that the intensity of sabotage either depends on a relation between the market share of the subsidiary and the elasticity of the derived demand for access or a standard Lerner condition augmented by the direct cost of sabotage. More specifically, if the subsidiary and independent firms coexist in equilibrium, then the intensity of sabotage increases with the subsidiary's size and the intensity of economies of scope but if the monopoly optimally excludes rivals then intensity of sabotage decreases on these same parameters.
Author: Álvaro E. Bustos Publisher: ISBN: Category : Languages : en Pages : 46
Book Description
In this paper we systematically study the vertical integration and sabotage decisions of a regulated bottleneck monopoly that sells access to independent downstream firms. Our results reconciliate a set of seemingly contradictory findings of the literature. We show that unless the monopoly's subsidiary is implausible more efficient than the independent firms, vertical integration never benefits consumers. Moreover, sabotage may prompt inefficient vertical integration. In addition, we show that the intensity of sabotage either depends on a relation between the market share of the subsidiary and the elasticity of the derived demand for access or a standard Lerner condition augmented by the direct cost of sabotage. More specifically, if the subsidiary and independent firms coexist in equilibrium, then the intensity of sabotage increases with the subsidiary's size and the intensity of economies of scope but if the monopoly optimally excludes rivals then intensity of sabotage decreases on these same parameters.
Author: George Chikhladze Publisher: ISBN: Category : Electric utilities Languages : en Pages : 128
Book Description
Many network industries have an upstream monopolist that sells an essential input to downstream firms. When price of access is regulated the integrated monopolist may have incentives to degrade the quality of access if it is integrated with one of the downstream firms. The goal of this dissertation is: 1) to study the US natural gas, electricity and telecommunications industries to document instances of sabotage; 2) to derive study the welfare optimal access charge and vertical control policies under two different downstream market structures, differentiated goods Bertrand duopoly and the dominant firm competitive fringe model. We find that concerns for sabotage are real as it does occur in these regulated industries. We also find that the regulator faces a trade-off between reducing the double markup problem by pricing access low, versus pricing access high in order to deter non-price discrimination. Also, the optimal vertical control policy is chosen to balance a trade-off between achieving an efficient downstream production mix and sabotage deterrence.
Author: Michael A. Crew Publisher: Springer Science & Business Media ISBN: 038723196X Category : Business & Economics Languages : en Pages : 247
Book Description
Deregulation has introduced competition into traditionally monopolistic markets, particularly telecommunications and electric utilities. This book brings together ten essays that were presented at the Center for Research in Regulated Industries at Rutgers University and funded by several regulated companies. The authors, who include young scholars as well as established and highly regarded consultants and researchers, address some of the major issues now facing network industries and regulators - deregulation, competition, stranded assets, diversification, pricing, and mergers and acquisitions.
Author: Robert Bork Publisher: ISBN: 9781736089712 Category : Languages : en Pages : 536
Book Description
The most important book on antitrust ever written. It shows how antitrust suits adversely affect the consumer by encouraging a costly form of protection for inefficient and uncompetitive small businesses.
Author: Richard Schmalensee Publisher: Elsevier ISBN: 0444824359 Category : Business & Economics Languages : en Pages : 943
Book Description
Annotation This is Vol 3 of the Handbook of Industrial Organization series (HIO). Vols 1 & 2 published simultaneously in 1989 under the editorship of Richard Schmalensee and Robert Willig. Many of the chapters in these successful volumes were widely cited and appeared on graduate reading lists, and some continue to appear even recently. Since the first volumes published, the field of industrial organization has continued to evolve. As the editors acknowledge in the Preface, these volumes had some gaps and this new volume aims to fill some of those gaps. The aim is to serve as a source, reference and teaching supplement for industrial organization, or industrial economics, the microeconomics field that focuses on business behavior and its implications for both market structures and processes, and for related public policies. The first two volumes of the HIO appeared at roughly the same time as Jean Tirole's book The Theory of Industrial Organization. Together they helped revolutionize the teaching of industrial organization, and provided a state-of-the-art summary. Tirole's book is concerned with the relevant theory, and several reviewers noted that the first two volumes of HIO contained much more discussion of the theoretical literature than of the empirical literature. In most respects, this imbalance was an accurate reflection of the field. Since then, the empirical literature has flourished, while the theoretical literature has continued to grow, and this new volume reflects that change of emphasis. *Part of the renown Handbooks in Economics series *Chapters are contributed by some of the leading experts in their fields. *A source, reference and teaching supplement for industrial organizations, or industrial economicists.
Author: Mark Armstrong Publisher: Elsevier ISBN: 008055184X Category : Business & Economics Languages : en Pages : 943
Book Description
This is Volume 3 of the Handbook of Industrial Organization series (HIO). Volumes 1 & 2 published simultaneously in 1989 and many of the chapters were widely cited and appeared on graduate reading lists. Since the first volumes published, the field of industrial organization has continued to evolve and this volume fills the gaps. While the first two volumes of HIO contain much more discussion of the theoretical literature than of the empirical literature, it was representative of the field at that time. Since then, the empirical literature has flourished, while the theoretical literature has continued to grow, and this new volume reflects that change of emphasis. Thie volume is an excellent reference and teaching supplement for industrial organization or industrial economics, the microeconomics field that focuses on business behavior and its implications for both market structures and processes, and for related public policies. *Part of the renowned Handbooks in Economics series *Chapters are contributed by some of the leading experts in their fields *A source, reference and teaching supplement for industrial organizations or industrial economists
Author: Christopher Decker Publisher: Cambridge University Press ISBN: 1139992139 Category : Business & Economics Languages : en Pages : 489
Book Description
Drawing from the most recent work on economic regulation, this book introduces readers to the main principles and examines how economic regulation is applied in four key public utility industries - electricity, gas, water and telecommunications. Written for students and practitioners with little prior knowledge of economic regulation, this is an accessible, non-technical entry point to the subject area, exploring the fundamental questions: Why do we regulate? What are alternatives to regulation? Which institutions are involved in regulation? What have been the impacts of regulation? Readers will gain a clear understanding of the basic principles that apply to all regulated sectors, as well as the regulatory choices that reflect the specific economic and physical characteristics of different industries. Case studies demonstrate connections between regulatory theory and practice, and extensive references provide readers with resources for more in-depth study.
Author: Álvaro E. Bustos
Author: Álvaro E. Bustos
Author: George Chikhladze
Author: David Dayan
Author: Alvaro Bustos
Author: Michael A. Crew
Author: OECD
Author: Robert Bork
Author: Richard Schmalensee
Author: Mark Armstrong
Author: Christopher Decker