Costs and Benefits of Vertical Divestiture

Communications & Strategies, Vol. 68, p. 41, 4th Quarter 2007

17 Pages Posted: 6 Mar 2009

See all articles by Helmuth Cremer

Helmuth Cremer

University of Toulouse (GREMAQ & IDEI); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Philippe De Donder

Economics Department

Jacques Cremer

Toulouse School of Economics (IDEI & GREMAQ)

Date Written: March 3, 2009

Abstract

This article discusses the tools economic theory provides for examining the implications of vertical separation in network industries. It argues that advocating vertical separation in all cases is too simplistic an answer. However, the economic profession has provided little guidance that would enable regulators to weigh the cost and benefits of different ownership and management structures in more sophisticated ways.

Keywords: Vertical separation, vertical integration, economics of regulation, pipelines

JEL Classification: L22, A20

Suggested Citation

Cremer, Helmuth and De Donder, Philippe and Cremer, Jacques, Costs and Benefits of Vertical Divestiture (March 3, 2009). Communications & Strategies, Vol. 68, p. 41, 4th Quarter 2007. Available at SSRN: https://ssrn.com/abstract=1352410

Helmuth Cremer (Contact Author)

University of Toulouse (GREMAQ & IDEI) ( email )

Toulouse, 31000
France
+33 1 6112 8606 (Phone)
+33 1 6112 8637 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Philippe De Donder

Economics Department ( email )

Montreal
Canada
1 514 997 3000 #4478 (Phone)

Jacques Cremer

Toulouse School of Economics (IDEI & GREMAQ) ( email )

Toulouse School of Economics
21 Allee de Brienne
Toulouse Cedex 6, F-31015
France
+33 620116695 (Phone)
+33 5 6112 8637 (Fax)

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