Lead


Lay summary
This research project focuses on the workings of imperfect competition. More specifically, the project adds to the analysis of the following key issues in modern industrial organization and regulation: (i)The workings of imperfect competition in vertically-related industries, where several firms are involved in manufacturing, distributing, and marketing the final product; (ii)The competitive effects of restructuring network industries, where the final product is distributed over a network infrastructure (e.g., telecommunications, electricity, railways, etc.);(iii)The theoretical and empirical foundations of competition policy. A key motivation for this project is the fact that competition authorities are increasingly faced with complex cases of alleged misconduct, especially in network and vertically-related industries, where the available economic literature offers little guidance. An important problem is the fact that many of the relevant game-theoretic models are not robust to subtle changes in assumptions or have never been subjected to thorough empirical testing. Consequently, this research project incorporates both theoretical and empirical work.