While competition between firms producing substitutes is well understood, less is known about rivalry between … relative to A. Hence, absent strong antitrust or intellectual property protections, the A firm can leverage its monopoly into B … substitute for Netscape; in our model, this maximizes Microsoft's joint monopoly profits. Furthermore, Microsoft has no incentive …

We consider a software vendor first selling a monopoly platform and then an application running on this platform. He … may face competition by an entrant in the applications market. The platform monopolist can benefit from competition for … three reasons. First, his profits from the platform increase. Second, competition serves as a credible commitment to lower …