The purpose of government in a democracy is to provide those goods and services to the community that the market fails to provide efficiently. To achieve this goal those in government must not only know what goods and services the community desires, but must also be prevented to choose outcomes...

The purpose of the paper is (1) to analyze the potential and the incentives for a vertically integrated input monopolist to engage in price-discrimination when there is downstream entry, and (2) to examine the question, whether a cost-based regulation of access charges for electricity grids...