The United States has charged Microsoft with tying its internet browser to its operating system (OS). This claim, of course, depends upon the government's assertion that Microsoft's browser and OS are separate products that can be tied together. Under current law, two items are deemed distinct...

We study competitive interactions between Intel and Microsoft, two producers of complementary products. In a system of complements, like the PC, the value of the final product depends on how the different components work together. This, in turn, depends on the firms' investments in complementary...