Showing 1 - 10 of 7,030
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
Thereare three points made in this paper. The first is that the question concerning choice of a product line by a monopolist is similar in structure to other adverse selection problems -- and can be analyzed in an elementary way by adapting techniques recently developed for such problems. Such...
Persistent link: https://www.econbiz.de/10012477549
absolute margin. We derive these results in both a monopoly model and a variety of different competitive models. We conclude …
Persistent link: https://www.econbiz.de/10012468099
Rankings have become increasingly popular on various markets, e.g. the market for study programs. We analyze their welfare implications. Consumers have to choose between two goods of unknown quality with exogenous presence or absence of an unbiased informative ranking. The existence of the...
Persistent link: https://www.econbiz.de/10012457583
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
, suffer a loss, that is not offset by gains to the monopolist. This is the "deadweight loss" from monopoly, and in … conventional analysis the only social cost of monopoly. The loss suffered by those who continue to buy the product at the higher … cost is regarded merely as a transfer from consumers to owners of the monopoly seller and has not previously been factored …
Persistent link: https://www.econbiz.de/10012479071
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...
Persistent link: https://www.econbiz.de/10012465313
So long as the entry and exit of firms using the generic technology sets the price in an industry, one or more price-taking firms can coexist with proprietary technologies yielding more or less substantial quasi-rents to the sunk development costs. Consumer welfare is increased if an innovator...
Persistent link: https://www.econbiz.de/10012466574
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
The viatical settlement industry provides an opportunity for terminally-ill consumers, typically HIV patients, to exploit a previously untapped source of equity in existing life insurance contracts to finance consumption and medical expenses. The 1996 introduction and dissemination of effecive...
Persistent link: https://www.econbiz.de/10012467521