This paper extends our companion paper [Part I - Laffont and Tirole (1990)] on the regulation of the rate of return and prices of a multiproduct firm in two directions. First, it studies optimal pricing by a regulated firm competing with regulated or unregulated rivals, with or without market power or other distorted pricing. It then focuses on the access pricing problem and its potential foreclosure effects. Second, it shows how optimal pricing can be decentralized to the regulated firm in the absence of cost and demand information.
ASJC Scopus subject areas
- Economics and Econometrics