|
EconStor >
Europa-Universität Viadrina Frankfurt (Oder) >
Wirtschaftswissenschaftliche Fakultät, Europa-Universität Viadrina >
Diskussionspapiere, Wirtschaftswissenschaftliche Fakultät, Europa-Universität Viadrina >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/23824
|
| | |
| Title: | | On the Allocative Efficiency of Ownership Unbundling  |
| Authors: | | Bolle, Friedel Breitmoser, Yves |
| Issue Date: | | 2006 |
| Series/Report no.: | | Diskussionspapiere / Europa-Universität Viadrina Frankfurt (Oder), Wirtschaftswissenschaftliche Fakultät 255 |
| Abstract: | | We analyze vertical structures where a regulated network operator serves n network users, and the network users compete in quantities for customers. We distinguish two cases: (i) none of the network users are related to the network operator (ownership unbundling), (ii) one of the network users is partially integrated with the operator and the others are disintegrated (legal unbundling). We seek to understand when ownership unbundling leads to lower customer prices, and formalize necessary conditions. In general, legal unbundling implies a less effective regulation, but it reduces the degree of market distortion caused by the difference between marginal costs and average costs (= regulated prices of network usage). We find that the necessary condition is not satisfied for realistic values of the relevant parameters, i.e. legal unbundling leads to lower costumer prices than ownership unbundling in most relevant markets. |
| Subjects: | | Unbundling vertical integration Cournot competition |
| JEL: | | L50 D61 D43 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Diskussionspapiere, Wirtschaftswissenschaftliche Fakultät, Europa-Universität Viadrina
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/23824
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|