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In an industry where regulated firms interact with unregulated suppliers, we investigate the welfare effects of a merger between regulated firms when cost synergies are uncertain before the merger and their realization becomes private information of the merged firm. The optimal merger policy...
Persistent link: https://www.econbiz.de/10010358241
In 2011, price peaks in retail gasoline prices caused public outrage and attracted the attention of German regulatory agencies. After having examined the market, competition authorities concluded that tacit collusion existed but could not easily be prosecuted under the given competition law. In...
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competition authority while technical and economic regulation would be performed by the sector regulator. At the same time, the …
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mechanism and Shleifer's yardstick Regulation. Unfortunately, in practical applications of these simple mechanisms the regulated … regulator must be extremely well-informed if he wants to apply this sort of regulation: except for the actual realizations of a … regulated public utility. This is the main reason why in practice the simple $RPI - X$ regulation prevails. Finally, in this …
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The purpose of this research is to evaluate the impact of vertical unbundling on German electric utilities. Our research mainly relies on in-depth interviews with sector-experts from the German utilities. We will discuss both short-term changes and the long-term impact on competition in the...
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coordination. This paper examines three persistent sources of flawed coordination: 1) a regulation versus unbundling dilemma, 2 …
Persistent link: https://www.econbiz.de/10010423547