کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
5078050 1477330 2013 14 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Optimal asset divestments with homogeneous products
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Optimal asset divestments with homogeneous products
چکیده انگلیسی

We study alternative market power mitigation measures in a homogeneous goods industry where productive assets have asymmetric costs. We characterise the asset divestment by a dominant firm which achieves the greatest reduction in prices (taking the size of the divestment as given). The optimal divestment entails the sale of assets whose costs are close to the post-divestment price (i.e. they are price-setting). A divestment of this type can be several times more effective in reducing prices than divestments of low-cost assets. We also establish that virtual divestments (often employed in the power industry) are at best equivalent to low-cost divestments in terms of their impact on consumer welfare, and cannot replicate the optimal divestment.

► We identify the most pro-competitive asset divestment by a dominant firm. ► It entails the sale of assets whose costs are close to the post-divestment price. ► It is much more effective in reducing prices than a low-cost divestment. ► Virtual divestments are at best equivalent to low-cost divestments.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: International Journal of Industrial Organization - Volume 31, Issue 1, January 2013, Pages 12-25
نویسندگان
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