In Cournot's model of complements, the producers of A and B are bothmonopolists. This paper extends Cournot's model to allow for competitionbetween complements on one side of the market. Consider two complements,A and B, where the A + B bundle is valuable only when purchasedtogether. Good A is...

Economic theory offers two different approaches to the analysis of group formation and the role of institutions. The general equilibrium approach explores the influence of the economic environment on the formation of groups. The game theoretic approach runs in the opposite direction; it explores...