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December 5, 2010 | History

Tying, upgrades, and switching costs in durable-goods markets 1 edition

Tying, upgrades, and switching costs in durable-goods markets
Dennis W. Carlton

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Tying, upgrades, and switching costs in durable-goods markets
Dennis W. Carlton, Michael Waldman.

Published 2005 by National Bureau of Economic Research in Cambridge, MA .
Written in English.

About the Book

"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.

Edition Notes

Includes bibliographical references.
Title from PDF file as viewed on 6/17/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.

Series
NBER working paper series ;, working paper 11407, Working paper series (National Bureau of Economic Research : Online) ;, working paper no. 11407.

Classifications

Library of Congress
HB1

The Physical Object

Format
Electronic resource

ID Numbers

Open Library
OL3478228M
LC Control Number
2005618222

History Created December 10, 2009 · 2 revisions Download catalog record: RDF / JSON

December 5, 2010 Edited by Open Library Bot Added subjects from MARC records.
December 10, 2009 Created by WorkBot add works page