Title:The Organization of Regulated Production: Complementarities, Correlation and Collusion
Author(s):JANSEN, Jos; JEON, Doh-Shin; MENICUCCI, DomenicoDate:2008Type of Publication:ArticleAbstract:We analyze the choice between vertical separation (VS) and vertical integration (VI) when two regulated firms produce complementary inputs with correlated costs and are protected by ex post break-even constraints. First, ...