Pricing to preclude sabotage in regulated industries

B-Tier
Journal: International Journal of Industrial Organization
Year: 2017
Volume: 51
Issue: C
Pages: 162-184

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We characterize the optimal access price and retail price for a vertically-integrated incumbent supplier (V) that faces limited competition from a new entrant in the retail sector. The optimal prices provide V with a relatively high wholesale profit margin and a relatively low retail profit margin. Consequently, V has no incentive to raise the costs of its retail rival.

Technical Details

RePEc Handle
repec:eee:indorg:v:51:y:2017:i:c:p:162-184
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-24