In this paper we address the possibility of horizontal foreclosure in markets for complementary services (software) where the consumption value of durables (hardware) depends on the availability of software. Horizontal foreclosure occurs when a hardware firm merges with a software firm and the...

We address the possibility of foreclosure in markets where the final good consists of a system composed of a hardware good and complementary software and the value of the system depends on the availability of software. Foreclosure occurs when a hardware firm merges with a software firm and the...

The authors develop a model in which the benefit of language acquisition is increasing in the number of individuals who speak the language. This gives rise to a network externality and, if language acquisition is costly, the language acquisition decisions by individuals may be inefficient. If...