Why tie a product consumers do not use?

Why tie a product consumers do not use?
Dennis W. Carlton, Dennis W. C ...
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Last edited by MARC Bot
December 19, 2020 | History

Why tie a product consumers do not use?

This paper provides a new explanation for tying that is not based on any of the standard explanations -- efficiency, price discrimination, and exclusion. Our analysis shows how a monopolist sometimes has an incentive to tie a complementary good to its monopolized good in order to transfer profits from a rival producer of the complementary product to the monopolist. This occurs even when consumers -- who have the option to use the monopolist's complementary good -- do not use it. The tie is profitable because it alters the subsequent pricing game between the monopolist and the rival in a manner favorable to the monopolist. We show that this form of tying is socially inefficient, but interestingly can arise only when the tie is socially efficient in the absence of the rival producer. We relate this inefficient form of tying to several actual examples and explore its antitrust implications.

Publish Date
Language
English
Pages
32

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Edition Availability
Cover of: Why tie a product consumers do not use?
Why tie a product consumers do not use?
2007, National Bureau of Economic Research
in English

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Book Details


Edition Notes

"August 2007"

Includes bibliographical references (p. 31-32).

Also available in PDF from the NBER World Wide Web site (www.nber.org).

Published in
Cambridge, Mass
Series
NBER working paper series -- no. 13339., Working paper series (National Bureau of Economic Research) -- working paper no. 13339.

Classifications

Library of Congress
HB1

The Physical Object

Pagination
32 p. ;
Number of pages
32

ID Numbers

Open Library
OL17635262M
LCCN
2007616480
OCLC/WorldCat
173521328

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History

Download catalog record: RDF / JSON / OPDS | Wikipedia citation
December 19, 2020 Edited by MARC Bot import existing book
December 15, 2009 Edited by WorkBot link works
April 25, 2009 Edited by ImportBot add OCLC number
September 29, 2008 Created by ImportBot Imported from Oregon Libraries MARC record