Vertical Mergers and Competition with a Regulated Bottleneck Monopoly PDF Download

Author: Alexander Galetovic P.
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 22

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Author: Alexander Galetovic P.
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 0

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Author: Álvaro E. Bustos
Publisher:
ISBN:
Category :
Languages : en
Pages : 46

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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: Robert Bork
Publisher:
ISBN: 9781736089712
Category :
Languages : en
Pages : 536

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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: David Dayan
Publisher:
ISBN:
Category : Business enterprises
Languages : en
Pages : 616

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Author: Jeffrey A. Eisenach
Publisher: Springer Science & Business Media
ISBN: 9401144079
Category : Business & Economics
Languages : en
Pages : 303

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Do the antitrust laws have a place in the digital economy or are they obsolete? That is the question raised by the government's legal action against Microsoft, and it is the question this volume is designed to answer. America's antitrust laws were born out of the Industrial Revolution. Opponents of the antitrust laws argue that whatever merit the antitrust laws may have had in the past they have no place in a digital economy. Rapid innovation makes the accumulation of market power practically impossible. Markets change too quickly for antitrust actions to keep up. And antitrust remedies are inevitably regulatory and hence threaten to `regulate business'. A different view - and, generally, the view presented in this volume - is that antitrust law can and does have an important and constructive role to play in the digital economy. The software business is new, it is complex, and it is rapidly moving. Analysis of market definition, contestibility and potential competition, the role of innovation, network externalities, cost structures and marketing channels present challenges for academics, policymakers and judges alike. Evaluating consumer harm is problematic. Distinguishing between illegal conduct and brutal - but legitimate - competition is often difficult. Is antitrust analysis up to the challenge? This volume suggests that antitrust analysis `still works'. In stark contrast to the political rhetoric that has surrounded much of the debate over the Microsoft case, the articles presented here suggest neither that Microsoft is inherently bad, nor that it deserves a de facto exemption from the antitrust laws. Instead, they offer insights - for policymakers, courts, practitioners, professors and students of antitrust policy everywhere - on how antitrust analysis can be applied to the business of making and marketing computer software.

Author: William B. Tye
Publisher: Praeger
ISBN:
Category : Business & Economics
Languages : en
Pages : 168

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This book provides a comprehensive analysis of the application of the new theory of contestable markets to the problem of the transition to deregulation in regulated industries. It offers an extensive review of both the theory and practice of contestable markets, as well as guidelines for the practical application of the theory to regulated industries and antitrust, with special consideration given to the problems of the rail industry. As applied in this industry, the theory promised to help balance the conflicting goals of regulatory transition and to define standards for revenue adequacy, cooperation among competitors, maximum reasonable rates, and antitrust immunity for mergers. Unlike other, chiefly theoretical, treatments of the subject, the author has provided a study of the theory of contestable markets as well as its past and potential applications. His introduction discusses such topics as the relevant theory of perfect contestability, implications for economic welfare, and recent applications of the theory. Chapter 2 deals with vertical mergers into contestable markets, while chapter 3 concerns itself largely with the transition to deregulation in regulated industries. Unlike other theoretical studies, however, the work also addresses the theory in practice. Using the insights gained when the theory was employed in the rail industry, the author draws conclusions regarding a broad range of regulatory and antitrust issues affecting all industries, such as economic analysis of vertical mergers and vertical economic practices.

Author: Thomas Mark Karier
Publisher: M.E. Sharpe
ISBN: 9780765608956
Category : Competition
Languages : en
Pages : 256

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Author: Christopher S. Yoo
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Recent mergers and academic commentary have placed renewed focus on what has long been one of the central issues in media policy: whether media conglomerates can use vertical integration to harm competition. This Article seeks to move past previous studies, which have explored limited aspects of this issue, and apply the full sweep of modern economic theory to evaluate the regulation of vertical integration in media-related industries. It does so initially by applying the basic static efficiency analyses of vertical integration developed under the Chicago and post-Chicago Schools of antitrust law and economics to three industries: broadcasting, cable television, and cable modem systems. An analysis of the market structure of these industries reveals that the preconditions recognized by both Schools as necessary for vertical integration to harm competition do not exist. In addition, the cost structure of these industries suggests that vertical integration may well lead to efficiencies sufficient to justify allowing such integration to occur. A dynamic efficiency analysis also suggests that attempts to regulate vertical integration in these industries are probably misguided. Growing reliance on compelled access to redress the problems purportedly caused by vertical integration threatens to dampen investment incentives in technologically dynamic industries in which such incentives are particularly important. Not only does forcing a monopolist to share an input deviate from the system of well-defined property rights needed to promote efficient levels of investment, it also deprives new entrants seeking to compete directly with the supposed monopoly bottleneck of their natural strategic partners. The Article also engages a complex web of arguments involving the extent to which technological innovation is affected by market concentration, standardization, and network externalities. A close review of the economic literature reveals that the relationship between these factors is too ambiguous to support the type of simple policy inference needed to prohibit vertical integration as a regulatory matter. The Article concludes with an analysis of the intellectual and institutional obstacles for adopting a more integrated economic approach to vertical integration in these industries.

Author: Paulina Beato
Publisher: IDB
ISBN: 9781931003360
Category : Business & Economics
Languages : en
Pages : 360

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Book Description
Annotation The Bank continues its search for new ways to improve the efficiency of infrastructure services in emerging economies by increasing competitiveness and promoting regional integration. Examples are drawn from Latin America and specific European industries. There is no index. Distributed in the US by The Johns Hopkins University Press. Annotation 2004 Book News, Inc., Portland, OR (booknews.com).