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Abstract

We analyse access price setting to a bottleneck facility where the fa- cility owner also competes in the deregulated downstream market. We consider a continuum of market structures from Cournot to Bertrand. These market structures are fully characterised by a single parame- ter representing the intensity of competition. We first show how the efficient component pricing rule (ECPR) should be modified as the downstream competitive intensity changes. We then analyse the opti- mal access price where a total-surplus-maximizing regulator trades off production efficiency and pro-competitive effects.

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