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The Strategic Use of Tying to Preserve and Create Market Power in Evolving Industries / Dennis W. Carlton, Michael Waldman.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Carlton, Dennis W.
Contributor:
National Bureau of Economic Research.
Waldman, Michael.
Series:
Working Paper Series (National Bureau of Economic Research) no. w6831.
NBER working paper series no. w6831
Language:
English
Subjects (All):
Antitrust law.
Bundling (Marketing).
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 1998.
Cambridge, Massachusetts : National Bureau of Economic Research, 1998.
Summary:
This paper investigates how the tying of complementary products can be used to preserve and extend monopoly positions. We first show how a firm that is a monopolist of a product in the current period can use tying to preserve its monopoly position in future periods. We then show using related arguments how a monopolist in one market can employ tying to extend its monopoly position into a newly emerging market. The analysis focuses on the importance of entry costs and network externalities. The paper includes a discussion of antitrust implications.
Notes:
Print version record
December 1998.

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