MARC Record from Library of Congress

LEADER: 02168cam a22003257a 4500
001 2005618222
003 DLC
005 20050617081819.0
007 cr |||||||||||
008 050617s2005 mau sb 000 0 eng
010 $a 2005618222
040 $aDLC$cDLC
050 00 $aHB1
100 1 $aCarlton, Dennis W.
245 10 $aTying, upgrades, and switching costs in durable-goods markets$h[electronic resource] /$cDennis W. Carlton, Michael Waldman.
260 $aCambridge, MA :$bNational Bureau of Economic Research,$cc2005.
490 1 $aNBER working paper series ;$vworking paper 11407
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 6/17/2005.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"This paper investigates the role of product upgrades and consumer switching costs in the tying of complementary products. Previous analyses of tying have found that a monopolist of one product cannot increase its profits and reduce social welfare by tying and monopolizing a complementary product if the initial monopolized product is essential, where essential means that all uses of the complementary good require the initial monopolized product. We show that this is not true in durable-goods settings characterized by product upgrades, where we show tying is especially important when consumer switching costs are present. In addition to our results concerning tying our analysis also provides a new rationale for leasing in durable-goods markets. We also discuss various extensions including the role of the reversibility of tying as well as the antitrust implications of our analysis"--National Bureau of Economic Research web site.
650 0 $aDurable goods, Consumer.
650 0 $aConsumers' preferences.
650 0 $aLease and rental services.
700 1 $aWaldman, Michael.
710 2 $aNational Bureau of Economic Research.
830 0 $aWorking paper series (National Bureau of Economic Research : Online) ;$vworking paper no. 11407.
856 40 $uhttp://papers.nber.org/papers/W11407