This paper considers a model of two interconnected networks with different qualities. There are call externalities in the sense that consumers value calls they send and receive. Networks compete in two part tariffs. We show that call externalities create private incentives for each competitor to...

Nous étudions l’ouverture à la concurrence d’un bien réseau dans lequel l’opérateur historique, intégré verticalement, gère en monopole l’infrastructure et est concurrencé sur le secteur des services. La qualité du bien réseau est le minimum des qualités de chaque composante....

Academic literature in public finance has focused on interjurisdictional tax competition—namely among similar types of local governments—but has leaved vertical externalities arising from interactions between two overlapping governments sharing the same tax base aside. The purpose of this...