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Relation verticale et régulation. Le problème des biens intermédiaires

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  • François Boldron
  • Cyril Hariton

Abstract

This paper shows that a regulator should not regulate a final product which industry is characterized by the need of an unregulated essential facility sold through non-linear tariffs. Two main reasons drive this result. First, the regulator maximizes social welfare and values more the final good production than the producer itself. Second, the regulator has access to an extra source of financing with the profits of the whole regulated sector. Classification JEL : D82, L12, L51

Suggested Citation

  • François Boldron & Cyril Hariton, 2001. "Relation verticale et régulation. Le problème des biens intermédiaires," Revue économique, Presses de Sciences-Po, vol. 52(3), pages 655-664.
    • Handle: RePEc:cai:recosp:reco_523_0655
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    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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