Monopolistic Bottlenecks Stifle Competition, Vertical Integration Preferred for Efficiency
The article looks at how rules and competition shape the market where one big company supplies a crucial ingredient that others need. The researchers study different ways regulations can affect how companies in this market compete. They consider if companies are good at providing the service needed. The study finds that when companies vary a lot in how good they are at their job, having fair access fees might be good for everyone. They also discover that it's generally better if the big supplier and smaller companies work together.