Imperfect legal unbundling of monopolistic bottlenecks

Legal unbundling and auctions in vertically integrated (utilities) markets

This paper addresses the effectiveness of auctions and legal unbundling as regulatory measures to tender a vertically integrated industry more competitive. Specifically, I analyze if implementing auctions and legal unbundling can counter market power in an industry where a Vertically Integrated Corporation (VIC) has a monopoly position in an essential, scarce upstream activity and also owns one...

Essays on Moral Norms, Legal Unbundling and Franchise Systems

Legal Unbundling can be a Golden Mean between Vertical Integration and Separation

We study an industry in which an upstream monopolist supplies an essential input at a regulated price to several downstream …rms. Legal unbundling means that a downstream …rm owns the upstream …rm, but this upstream …rm is legally independent and maximizes its own upstream pro…ts. We allow for non-tari¤ discrimination by the upstream …rm and show that under quite general conditions legal unbund...

Monopolistic Competition

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Unbundling Ownership and Control∗

Treating control as an asset that can be bought and sold, we introduce a model of the simultaneous and separable trading of ownership and control in a private information setting. The model provides a novel explanation for the prevalence and persistence of the separation of ownership from control in modern corporations: efficiency in the market for corporate control is more easily achieved when...