A vertically integrated firm that wholesales to its retail rivals can, if it has sufficient market power, set the margin between its retail and wholesale prices so as to harm its rivals. Conventionally, an imputation test is used to determine whether such behavior is being undertaken. Such tests...

A vertically integrated firm that wholesales to its retail rivals can, if it has sufficient market power, set the margin between its retail and wholesale prices so as to harm its rivals. Conventionally, an imputation test is used to determine whether such behavior is being undertaken. Such tests...

The Merger Guidelines released in March 2008 by the Australian Competition and Consumer Commission (ACCC) provide a guide to the analytical approach the ACCC intends to adopt to assessing mergers for the purposes of s.50 of the Trade Practices Act. The new Guidelines do a relatively good job in...

Recent models which claim to provide examples of profitable foreclosure--when a firm weakens competition by reducing its access to customers or inputs--have led to calls for more aggressive antitrust activity by courts and regulators. However, we show that the alleged anticompetitive behavior of...

Termination charges toward newer entrants are often set asymmetrically to exceed efficient costs for telephony traffic. Such practices are said to be beneficial to consumers as well as providing competition a quot;leg-upquot;. However claims of consumer benefit are dubious at best, while infant...

Capacity-based interconnection (CBI) prices vary exactly with the costs a network provider incurs when supplying an interconnecting party. That is, they equal incremental costs, rather than being averaged over any output measure. We argue such prices (1) are as practicable and more efficient...

The past year in economics at the Federal Communications Commission focused on protecting competition in developing online markets. Our review discusses important economic issues that are raised by the FCC’s Open Internet rulemaking (which is commonly referred to as “net neutrality”) and...

Capacity-based interconnection (CBI) prices vary exactly with the costs a network provider incurs when supplying an interconnecting party. That is, they equal incremental costs, rather than being averaged over any output measure. We argue such prices (1) are as practicable and more efficient...

Capacity-based interconnection (CBI) prices vary exactly with the costs a network provider incurs when supplying an interconnecting party. That is, they equal incremental costs, rather than being averaged over any output measure. CBI prices can resemble bill and keep. For two-sided...

The "local cap" uses minimal information to establish an optimal price for a monopolized input in a vertically integrated firm. Under it only upstream costs need be known. No demand information is required. It is comparatively welfare efficient and has a small regulatory footprint. Profits are...