Vertical Integration and Shared Facilities in Unregulated Industries

In this paper we consider a market situation in which initially there is an unintegrated monopoly upstream that owns an important facility and two dowstream firms. Then the market is liberalized allowing upstream entry and vertical integration. The equilibrium entry mode–sharing the incumbent facility or building a new facility– is derived as well as the equilibrium market structure. Several policy prescriptions are set forth.

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Year of publication:	2004
Authors:	Balmaceda, Felipe ; Saavedra, Eduardo
Institutions:	Centro de Economía Aplicada, Universidad de Chile

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Extent:	application/pdf
Series:	Documentos de Trabajo.
Type of publication:	Book / Working Paper
Notes:	Number 195
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005053624