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We consider a monopolistic supplier's optimal choice of wholesale tariffs when downstream firms are privately informed about their retail costs. Under discriminatory pricing, downstream firms that differ in their ex ante distribution of retail costs are offered different tariffs. Under uniform...
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This paper analyses a model of vertical product differentiation with one incumbent and one entrant firm. It is shown that if firms can produce only one quality level welfare in this entry game can be lower than in monopoly. This is the case if qualities are strategic complements because the...
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We propose a novel approach to the evaluation of new network technologies that combines an engineering cost model with a differentiated multi-player oligopoly model subject to wholesale access regulation. It is based on Hoernig et al. (2010), 1 which examines the cost differentials and...
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