We introduce a flexible model of telecommunications network competition with non-uniform calling patterns, which account for the fact that customers tend to make most calls to a small set of contacts. Equilibrium call prices are distorted away from marginal cost, and competitive intensity is...

We study bargained input prices where up and downstream firms can choose alternative vertical partners. We apply our model to bargained airport landing fees where a number of interesting policy questions have arisen. For example, what is the impact of joint ownership of airports? Does airline...

We propose a two-sided model with two competing Internet platforms, and a continuum of Content Providers (CPs). We study the effect of a net neutrality regulation on capacity investments in the market for Internet access, and on innovation in the market for content.Under the alternative...

The Directorate General for Competition at the European Commission enforces competition law in the areas of antitrust, merger control, and state aids. This year's article provides first a general presentation of the role of the Chief Competition Economist's team and surveys some of the main...

We propose a two-sided model with two competing Internet platforms, and a continuum of heterogeneous Content Providers (CPs). We study the effect of a net neutrality regulation on capacity investments in the market for Internet access, and innovation in the market for content. Under the...

We develop a model of logit demand that extends to a multi-firm industry the traditional duopoly framework of network competition with access charges. Firstly, we show that, when incumbents do not face the threat of entry and compete in prices, they inefficiently establish the reciprocal access...

By any measure, the communication sector is important. It is no surprise, then, that the communication sector has attracted the attention of both policy-makers and economists. In this paper, we argue that four characteristics of the networks that deliver communication services make this area of...