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Tying, Upgrades, and Switching Costs in Durable-Goods Markets

Carlton, Dennis W. - 2005

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...

Persistent link: https://www.econbiz.de/10012467274

Do Flexible Durable Goods Prices Undermine Sticky Price Models?

Barsky, Robert - 2003

Multi-sector sticky price models have surprising implications when durable goods have flexible prices. While in actual data the production of virtually all durables exhibits strong negative responses to monetary contractions, in dynamic general equilibrium models a monetary contraction causes...

Persistent link: https://www.econbiz.de/10012468866

Competition, Monopoly, and Aftermarkets

Carlton, Dennis W. - 2001

aftermarkets? In this paper we explore a number of models characterized by either competition or monopoly in the new-unit market …

Persistent link: https://www.econbiz.de/10012470643

Durable Goods Cycles

Caplin, Andrew - 1999

equilibrium (S,s) model of durable demand. We analyze both competitive and monopoly supply. We show that equilibrium interactions …

Persistent link: https://www.econbiz.de/10012471821

Cyclical Pricing of Durable Goods

Bils, Mark - 1989

I examine price markups in monopolisticly-competitive markets that experience fluctuations in demand because the economy experiences cyclical fluctuations in productivity. Markups depend positively on the average income of purchasers in the market. For a nondurable good average income of...

Persistent link: https://www.econbiz.de/10012475998

The Strategic Use of Tying to Preserve and Create Market Power in Evolving Industries

Carlton, Dennis W. - 1998

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 … monopoly position into a newly emerging market. The analysis focuses on the importance of entry costs and network externalities …

Persistent link: https://www.econbiz.de/10012471980

Lumpy Consumer Durables, Market Power, and Endogenous Business Cycles

Krishna, Kala - 2001

This paper examines the role of lumpy consumer durables and market power in generating endogenous cycles which seem to be consistent with the facts. When goods are durable, past consumption choices determine the current market size which consists of consumers who have not purchased the good...

Persistent link: https://www.econbiz.de/10012470428

Does Competition Encourage Credit Provision? Evidence from African Trade Credit Relationships

Fisman, Raymond - 2003

Previous work has claimed that monopoly power facilitates the provision of credit, since monopolists are better able to … creditworthiness, monopoly power may reduce credit provision because hold up problems ex post will deter borrowers from investing in … establishing creditworthiness. Empirically, we examine the relationship between monopoly power and credit provision, using data on …

Persistent link: https://www.econbiz.de/10012469039

Antitrust

Kaplow, Louis - 2007

This is a survey of the economic principles that underlie antitrust law and how those principles relate to competition policy. We address four core subject areas: market power, collusion, mergers between competitors, and monopolization. In each area, we select the most relevant portions of...

Persistent link: https://www.econbiz.de/10012465789

Monopsony Power in the Market for Nurses

Sullivan, Daniel - 1989

Estimates are presented of the inverse elasticity of supply of nursing services to the individual hospital, a quantity which is a natural measure of employer market power. The estimates corresponding to employment changes taking place over one year are quite high (in the neighborhood of 0.79)...

Persistent link: https://www.econbiz.de/10012476017