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 essential facility and two downstream 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. Classification-JEL Codes: D43, D61, L22, L13, L41, L42
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Bibliographic InfoPaper provided by Georgetown University, Department of Economics in its series Working Papers with number gueconwpa~04-04-13.
Date of creation: 13 Apr 2004
Date of revision:
Contact details of provider:
Postal: Georgetown University Department of Economics Washington, DC 20057-1036
Web page: http://econ.georgetown.edu/
Postal: Marcia Suss Administrative Officer Georgetown University Department of Economics Washington, DC 20057-1036
Other versions of this item:
- 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.
- Felipe Balmaceda & Eduardo Saavedra, 2004. "Vertical Integration and Shared Facilities in Unregulated Industries," Documentos de Trabajo 195, Centro de Economía Aplicada, Universidad de Chile.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-11-22 (All new papers)
- NEP-COM-2004-11-22 (Industrial Competition)
- NEP-IND-2004-11-22 (Industrial Organization)
- NEP-MIC-2004-11-22 (Microeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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