We analyze how network regulation affects investment into network infrastructure and complementary services. While regulation negatively affects investment incentives in the regulated network market, the effects of network regulation on investment in complementary services can be either negative...

We re-examine the view that a ban on price discrimination in input markets is particularly desirable in the presence of buyer power. This argument crucially depends on an inverse relationship between downstream firms’ profits and the uniform input price. Assuming different input efficiencies...