We build on Mason and Weeds’ (2010) model of duopoly investment under uncertainty by allowing high initial values of the profit shock as in Huisman and Kort (1999). Persistent first-mover advantage increases the likelihood of immediate simultaneous investment. In contrast with previous models...

[eng] Universal Service Obligations and Competition in Networks.. The opening of public networks to competition raises the twofold question of determining which operator is to fulfil the universal service obligations and how the operator’s resultant losses are to be financed. The paper...

We modelize a free price competition between a vertically integrated incumbent operating as an upstream monopolist in an essential facility and facing competition as service provider. The incumbent determines freely the access charge to its network. We determine conditions for which the...