unbundling are still advantageous when we allow for discriminatory capacity investments, investments into marginal cost reduction … undesirable. -- Network industries ; regulation ; vertical relations ; investments ; ownership ; sabotage …

imperfections in legal unbundling (keeping ownership fixed) generally increases total output. Increasing the incumbent's ownership …, higher ownership shares of the downstream incumbent may sometimes lead to lower degrees of imperfections. Our analysis … suggests that consumers may benefit most from legal unbundling with strong regulation and parts of ownership given to a …