Gonçalves, Ricardo2016-12-192016-12-192015GONÇALVES, Ricardo - Revenue sharing agreements in regulated sector. - In 9th Meeting of the Portuguese Economic Journal, Angra do Heroísmo, Portugal, 3-5 July, 2015. - In Portuguese Economic Journal. ISSN 1617-982X. N.º 10258 (2015), p. 1-20http://hdl.handle.net/10400.14/21095In a simple two-segment supply chain, we analyze the desirability and properties of revenue sharing agreements, in regulated sectors, compared to two di¤erent scenarios: successive monop- olies and upstream regulation. Our model incorporates the possibility that the downstream rm exerts retail e¤ort to stimulate demand. In doing so, it adds an additional (e¤ort-related) ex- ternality to the supply chain (on top of the negative pricing externality). We nd such revenue sharing agreements to be mutually bene cial to rms as well as welfare enhancing, although when retail e¤ort is relevant, they do not yield a rst-best outcome. These results provide several interesting policy and regulatory recommendations.engRevenue sharing agreementsRegulationconference object