Costs and Benefits of Vertical Divestiture
Communications & Strategies, Vol. 68, p. 41, 4th Quarter 2007
17 Pages Posted: 6 Mar 2009
Date Written: March 3, 2009
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: Suggested Citation