The Promise and Pitfalls of Restructuring Network Industries

Stefan Buehler 1
  • 1 University of Zurich and University of St. Gallen,, St. Gallen, Switzerland

Abstract

This paper examines the competitive effects of reorganizing a network industry’s vertical structure. In this industry, an upstream monopolist operates a network used as an input to produce horizontally differentiated final products that are imperfect substitutes. Three potential pitfalls of restructuring integrated network industries are analyzed: (i) double marginalization, (ii) underinvestment and (iii) vertical foreclosure. The paper studies the net effect of restructuring on retail prices and cost-reducing investment and discusses policy implications.

Artikel kaufen
Erhalten sie sofort unbegrenzten Zugriff auf den Artikel.
Anmelden
Haben Sie den Zugang bereits erworben? Melden Sie sich bitte an.


oder
Zugriff über Ihre Institution

Zeitschrift + Hefte

Suche