Vertical Integration and Shared Facilities in Unregulated Industries
AbstractIn this paper we consider a market situation in which initially there is an unintegrated monopoly upstream that owns an important facility and two dowstream firms. Then the market is liberalized allowing upstream entry and vertical integration. The equilibrium entry mode–sharing the incumbent facility or building a new facility– is derived as well as the equilibrium market structure. Several policy prescriptions are set forth.
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Bibliographic InfoPaper provided by Centro de Economía Aplicada, Universidad de Chile in its series Documentos de Trabajo with number 195.
Date of creation: 2004
Date of revision:
Other versions of this item:
- Felipe Balmaceda(University of Chile), Eduardo Saavedra(Georgetown University/Ilades), 2004. "Vertical Integration and Shared Facilities in Unregulated Industries," Working Papers gueconwpa~04-04-13, Georgetown University, Department of Economics.
- Eduardo Saavedra & Felipe Balmaceda, 2004. "Vertical Integration and Shared Facilities in Unregulated Industries," ILADES-Georgetown University Working Papers inv153, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
- L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
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