Degryse, Hans; Bouckaert, J.M.C.; van Dijk, T. - Tilburg University, Center for Economic Research - 2008
Competition authorities and regulatory agencies sometimes impose pricing restrictions on firms with substantial market …-prices-to-shelteredconsumers” decreases prices in the sheltered segment, relaxes competition in the competitive segment, increases the rival’s profits, and … segment, lowers the rival’s profits, and augments the consumer surplus. In particular, while second-period competition is …