According to the new European telecom regulation, incumbent operators are required to provide access to such bottlenecks on fair, reasonable and non-discriminatory terms. We explore different interpretations of this general rule in a model in which the bottleneck can be used by external (to the...

We show how an upstream firm, by using a price-dependent profit-sharing rule, can prevent destructive competition between downstream firms that produce relatively close substitutes. With this rule, the upstream firm induces the retailers to behave as if demand has become less price elastic. As a...

In this paper we show how an upstream firm can prevent destructive competition among downstream firms producing relatively close substitutes by implementing a price-dependent profit-sharing rule. The rule also ensures that the downstream firms undertake investments which benefit the industry in...