In several European merger cases competition authorities have demanded that the merging firm auctions off virtual … marginal cost. This output is sold in the market in competition with the merging firm. The paper compares sale of physical and …

theory of Stackelberg competition and Nash competition with strategic investment under endogenous entry. These theories are … applied to models of competition in quantities, prices and to patent races. The results are used to propose a new approach to … competition policy and issues of the abuse of dominance. …