Bouckaert, Jan; Degryse, Hans; Dijk, Theon Van - CESifo - 2008
-period setting where the market displays a competitive and a sheltered segment. A ban on “higher-prices …-to-sheltered-consumers” decreases prices in the sheltered segment, relaxes competition in the competitive segment, increases the rival’s profits, and … may harm the dominant firm’s profits. We show that a ban on “higher-prices-to-sheltered-consumers” increases the dominant …