Airports have become platforms that derive revenues from both aeronautical and commercial activities. The demand for these services is characterized by a one-way complementarity in that only air travelers can purchase retail goods at the airport terminals. We analyze a model of optimal airport...

Price capped firms enjoy a large degree of pricing discretion, which may damage captive customers and have adverse effects on the development of competition when regulated firms also operate in competitive industries. We study two alternative regulatory approaches to limit such a discretion. The...

We study a set of bilateral Nash bargaining problems between an upstream input supplier and several differentiated but competing retailers. If one bilateral bargain fails, the supplier can sell to the other retailers. We show that, in a disagreement, the other retailers' behavior has a dramatic...

<i> Who Gains from Universal Service Obligations? A Welfare Analysis of the Rule ‘One Price for Everywhere’ </i> (di Alberto Iozzi) - ABSTRACT: This paper provides an analysis of the welfare effects of imposing the provision of a universal service at a uniform price on regulated network utilities....

We contribute to the theoretical and empirical literature on waste trade, with a focus on the secondhand market of plastic materials. To do this, we take two main steps: we first model a two-country setting with an exporting and an importing country, to derive testable predictions on how their...

This paper shows that a price-capped firm under the threat of entry in some of the markets it serves can strategically manipulate its price structure to deter entry. In doing so, the regulated firm uses the price cap constraint as a commitment device to an aggressive pricing behaviour in case of...

This paper analyzes the allocative properties of price cap regulation under very general hypotheses on the nature of society's preferences. We propose a generalized price cap that ensures the convergence to optimal (second best) prices in the long-run equilibrium for virtually any form of the...

This paper studies a spatial duopoly under uniform delivered pricing when firms do not ration the supply of the good, thus extending to a spatial context the analysis of oligopolistic markets with no rationing. The paper shows the existence of the equilibrium in prices under different...