We investigate the manner in which vertical separation affects lobbying activities as well as the access charges for essential facilities. We find that vertical separation either increases or decreases the access charge, and this depends on the relative efficiency between the incumbent and new...

We investigate whether or not privatization is beneficial from the viewpoint of social welfare in a monopolistic competition model. We discuss the relationship between the welfare effects of privatization and the degree of foreign direct investment in the private sector, which is an important...

Using a standard linear city model with two firms, we consider how their licensing activities following their R&D investments affect the locations of the firms and the effort levels of the R&D investments. Although recent studies show that R&D investments that may cause a large cost differential...

We investigate a mixed market in which a state-owned, welfare-maximizing public firm competes against profit-maximizing n domestic private firms and m foreign private firms. A circular city model with quantity-setting competition is employed. We find that the equilibrium location pattern depends...

Friedman and Thisse (RAND Journal of Economics, 1993) show that spatial agglomeration appears in a standard two-stage location price model if the symmetric firms can collude in prices. We introduce a cost difference between two firms. We show that agglomeration never appears in a collusive...