Access Pricing and Bundling

Area 09 – Ingegneria industriale e dell'informazione

A vertically integrated incumbent can engage in anticompetitive behaviours against an entrant in the downstream segment which provides two independent products on the retail market, one that needs the access to the network input and one in monopoly. The incumbent can deny the access to an entrant which sells the products separately or it can raise the access cost for an entrant which bundles. The regulation of the access is necessary in order to avoid these anticompetitive practices. We evaluate the optimal tariff to the network input both in complete and incomplete information. The intervention of the regulator brings back the competition on final prices and it increases the entrant’s ability to practice social beneficial bundling

SINTESI