with search in the housing market and defaultable long-term mortgages. In equilibrium, both sellers' asking prices and time …-to-sell increase with the relative size of their outstanding mortgages. In turn, the liquidity of the housing market associated with …

regulation, vertical integration and legal unbundling regimes provide highest investment incentives and lead to highest welfare …. However, we also find foreclosure in the downstream market if the potential degree of horizontal product differentiation of … the entrant is low. Under ownership unbundling, investment incentives are lower but there is never foreclosure of the …