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December 3, 2010 | History

Why tie a product consumers do not use? 1 edition

Why tie a product consumers do not use?
Dennis W. Carlton

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Why tie a product consumers do not use?
Dennis W. Carlton, Joshua S. Gans, Michael Waldman.

Published 2007 by National Bureau of Economic Research in Cambridge, Mass .
Written in English.

About the Book

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.

Edition Notes

"August 2007"

Includes bibliographical references (p. 31-32).

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

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

The Physical Object

Pagination
32 p. ;
Number of pages
32

ID Numbers

Open Library
OL17635262M
OCLC/WorldCat
173521328

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

December 3, 2010 Edited by Open Library Bot Added subjects from MARC records.
December 10, 2009 Created by WorkBot add works page