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two-part tariff. Yoon (2010) considers a case in which an MNO and an MVNO are producing horizontally differentiated services and compares the cost-plus regulation and the retail-minus regulation. Furthermore, he analyzes the regulations effects on social welfare and the MNO’s incentive to make a cost-reducing investment. Hoffler and Schmidt (2007) consider a case where MNOs and MVNOs are producing horizontally differentiated services and the firms face symmetric demand and cost. In this setting, they show that the retail-minus regulation may increase retail