Rüttgers, Christian; Schwarz, Christian - In: Schmollers Jahrbuch : Journal of Applied Social Science … 130 (2010) 1, pp. 71-94
This paper highlights the following unique characteristic of the piped water market: Consider two firms that supply different water qualities into the same net. The mixed water quality of both firms defines the fixed costs of the net. These costs decrease with a higher water quality. Our model...