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structure with one firm choosing higher investments. While access regulation imposed on the dominant firm leads to lower prices … network effects leading to potentially increased demand, regulation can substantially lower aggregate social welfare …
Persistent link: https://www.econbiz.de/10003304433
We model competition between two unregulated mobile phone companies with price-elastic demand and less than full market coverage. We also assume that there is a regulated full-coverage fixed network. In order to induce stronger competition, mobile companies could have an incentive to raise their...
Persistent link: https://www.econbiz.de/10003005098
We analyze the effects of accidents and liability obligations on the incentives of car manufacturers to monopolize the markets for their spare parts. We show that monopolized markets for spare parts lead to higher overall expenditures for consumers. Furthermore, while the manufacturers invest...
Persistent link: https://www.econbiz.de/10003726042