This paper explores a firm's incentive to technologically tie when Ramp;D is important and finds that technological tying increases innovation, which is an efficiency not considered in other tying models. Intuitively, technological tying protects the seller from aftermarket entry, ensuring that...

Technological innovation, externalities and network effects keep shifting the preference parameters in cellular telecommunication service sector. The paper suggests a framework to model these changes. It notes two channels that affect the service prices (in possibly opposite ways). In each...