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This paper provides a formal analysis on the investment coordination problem in a vertically separated electricity … supply industry, although the analysis may apply also to other network industries. In an electric- ity system, the investment …. We adopt a three-stage profit-optimized investment model, with a (regulated) monopoly network and two asymmetrical …
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We study an industry in which an upstream monopolist supplies an essential input at a regulated price to several downstream firms. Legal unbundling means that a downstream firm owns the upstream firm but this upstream firm is legally independent and maximizes its own upstream profits. We allow...
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We study an industry with a monopolistic bottleneck (e.g. a transmission network) supplying an essential input to several downstream firms. Under legal unbundling the bottleneck must be operated by a legally independent upstream firm, which may be partly or fully owned by an incumbent active in...
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