The law and economics literature on the tragedy of the anticommons suggests that producers of complementary goods should integrate themselves. Recent decisions by the antitrust authorities seem to indicate that there is tradeoff between the “tragedy” and the lack of competition which might...

In this paper we study price competition, equilibrium market configurations and entry when firms compete in vertically-di¤erentiated markets producing complementary goods. We consider two complements and start from a configuration where the market for one complement is a duopoly, whereas the...

A bundled discount occurs when a seller charges less for a bundle of goods than for its components when sold separately. A characteristic of such discounting is that a rival who makes only one of the products in the bundle may have to give a larger per item discount in order to compensate the...

I study Cournot competition under incomplete information about demand while assuming that market price must be non-negative for all demand realizations. Although this assumption is very natural, it has only rarely been made in the earlier literature. Yet it has important economic consequences:...

I study Cournot competition under incomplete information about demand while assuming that market price must be non-negative for all demand realizations. Although this assumption is very natural, it has only rarely been made in the earlier literature. Yet it has important economic consequences:...

In this paper we study price competition, equilibrium market configurations and entry decisions when firms compete in vertically-differentiated markets producing complementary goods. We show that allowing firms to sell complementary goods may be welfare-enhancing and pro-competitive. In fact,...

We illustrate conditions under which a trade platform selling its own products alongside third-party sellers benefits or harms consumers. This benefits consumers by lowering prices in a suite of models: a gatekeeper platform facing a competitive fringe of sellers, when fringe sellers also have...

We illustrate conditions under which a trade platform selling its own products along with third-party sellers benefits or harms consumers. This benefits consumers by lowering prices in a suite of models: a gatekeeper platform facing competitive fringe of sellers, when fringe sellers can also...

The extant economic and marketing literature on product line design mainly addresses firm's product decisions in conventional markets. However, many products demonstrate salient network externalities in their consumption, such as computers, software, telephone, telefax, and Internet routers. To...