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- Title
Regulation in Vertically-Related Industries: Myths, Facts, and Policy.
- Authors
Sappington, David E. M.
- Abstract
This paper explains why conclusions that appear to be "facts" can truly be "myths" in industries like today's telecommunications industry, where key suppliers operate in multiple vertical stages of production. The paper explains, for example, why an entrant's decision to make or buy critical production inputs may be largely insensitive to the price of these inputs. It also reviews why a vertically-integrated producer (VIP) may prefer to assist, rather than disadvantage, retail rivals, and why a VIP may be disadvantaging rivals even when it provides them with the same wholesale service quality that it provides to its own retail affiliate.
- Subjects
TELECOMMUNICATION equipment industry; SUPPLY chains; QUALITY of service; PRODUCTION (Economic theory); HIGH technology industries; WHOLESALE trade
- Publication
Review of Industrial Organization, 2006, Vol 28, Issue 1, p3
- ISSN
0889-938X
- Publication type
Article
- DOI
10.1007/s11151-006-0005-9