In Italy, fixed telecommunications were liberalised 15 years ago, but the incumbent is still the dominant operator. The Italian antitrust authority has recently fined Telecom Italia for margin squeeze and technical sabotage, proving that the incumbent still has the incentive and the power to...

To explain organizational decisions in multistage production processes we assume a production process with one producer and two suppliers of which one is the firm's direct supplier and the other one is the supplier of the supplier. The firm decides only on the organizational form of her direct...

This paper studies the welfare consequences of a vertical merger that raises rivals' costs when downstream competition is à la Cournot between firms with constant asymmetric marginal costs. The main result is that such a vertical merger can nevertheless improve welfare if it involves a...