Farrell, Joseph; Katz, Michael - Institute of Business and Economic Research (IBER), … - 2001
We explore the logic of predation and rules designed to prevent it in markets subject to network effects. Although, as … many have informally argued, predatory behavior is plausibly more likely to succeed in such markets, we find that it is … particularly hard to intervene in network markets in ways that improve welfare. We find that imposition of the leading proposals …