Partly motivated by the recent antitrust investigations concerning Google, we develop a leverage theory of tying in two-sided markets. We analyze incentives for a monopolist to tie its monopolized product with another product in a two-sided market. Tying provides a mechanism to circumvent the...

Modern economic theory predicts that tying can serve as a tool for leveraging market power. In line with this economic theory, competition authorities regulate the tying of Microsoft Windows with its Media Player or Internet browser in the EU and Japan. The authorities also take note of the...

Since Apple and Google launched their mobile app stores in 2008, the market for mobile apps has experienced rapid growth. Given the existence of multiple app platforms, fundamental questions in the app industry are how app developers choose which app platform to enter and which market designs...