This paper studies the value and optimal timing for investment in finite-lived monopolies, extending the literature on real option games by considering the cases of random and certain-lived monopolies. Under these settings, firms face the risk of demonopolization, that can occur as a random or a certain event. We show that these new settings produce significantly different results when compared...

In this paper I develop a theoretical model and analyze the relationship between two bilateral monopolies, investments decisions of downstream …rms regarding technologies speci…c to suppliers, and suppliers’ incentives to merge. The paper discusses the concept of the choice of dedicated versus ‡exible production technology in the context of bilateral monopolies. I aim to answer two questions. F...

Patents on many blockbuster drugs will expire in the near future, opening up the doorways for generic production. Brandname drug companies lose an estimated half of their U.S. sales during the first six months of generic production alone. In an effort to forestall large sales declines, some brand-name pharmaceutical companies are scrambling to delay generic production. One measure brand-name ph...

The view of line-bound energy industries as "natural monopolies" has changed considerably during recent years upon the perception that each of the industries could be seen as a combination of different functions. The natural monopoly perception for each function has been reassessed, resulting in many cases in transportation functions such as transmission and distribution as well as dispatch rem...

In this paper we analyze a generalization of vertical monopolies in which monopoly suppliers trade essential inputs with one another. The most obvious applications of the model, which we call symbiotic production, are to postal and telecommunications services. We show how producers can use per-unit tariffs to achieve cooperative outcomes without colluding directly over consumer prices. We then ...

BACKGROUND In order to maintain both quality and efficiency of health services in a small country with a scattered population, Norway established a monopoly system for 38 highly specialized medical services. The geographical distributions of these services, which are provided by one or two university hospitals only, were analysed. METHODS The counties of residence for 2,711 patients admitted ...