Following Bernheim and Whinston (1990), this paper addresses the effects of multimarket contact on firms’ ability to collude. Real world imperfections tend to make firms’ objective function strictly concave and market supergames “interdependent”: firms’ payoffs in each market depend on how they are doing in others. Then, multimarket contact always facilitates collusion. It may even […] Read more
14 September 1999 - Research Papers
, Abuse of Dominance, Competition Economics, Cooperation and Vertical Agreements, Mergers, Regulation
In this paper we compare the access to an essential facility in two different property rights regimes. In one of them, the owner of the facility has a full private property right. In the other, access is regulated according to the efficient component pricing rule. Proponents of the second regime claim that this rule is […] Read more
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