The Good Monopoly: A Case for Joint Ownership of Competing Systems?

• Autor(a) principal: Barros, Pedro Pita
• Data de Publicação: 1995
• Outros Autores: Leite, António Nogueira
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/87945

In this paper we show that, in a framework in which there are two competing systems (for example, GSM cellular and trunk radio telecommunications networks) and consumers value more highly the good available in the system in which production costs are higher, the usual result that separate ownership increases welfare may be reversed. In fact, we are able to show that when the the difference in costs from the least preferred system to its competitor system is relatively large, the usual result is reversed and joint ownership leads to a higher level of welfare than separate ownership.