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 essential facility and two downstream 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:	2004-04-13
Institutions:	Georgetown University, Department of Economics
Subject:	Essential facilities \| shared-facility agreements \| Vertical integration \| Strategic substitutes

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; D61 - Allocative Efficiency; Cost-Benefit Analysis ; L22 - Firm Organization and Market Structure: Markets vs. Hierarchies; Vertical Integration ; L13 - Oligopoly and Other Imperfect Markets ; L41 - Monopolization; Horizontal Anticompetitive Practices ; L42 - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005622955