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We study price discrimination in a monopolistic software market. The monopolist charges different prices for the upgrade version and for the full version. Consumers are heterogeneous in taste for infinitely durable software and there is no resale. We show that price discrimination leads to a...
Persistent link: https://www.econbiz.de/10013082732
monopoly problem when the price imperfectly signals quality to the uninformed buyers. We then study the effect of noise on …
Persistent link: https://www.econbiz.de/10013093809
monopoly problem when the price imperfectly signals quality to the uninformed buyers. We then study the effect of noise on …
Persistent link: https://www.econbiz.de/10013071968
This study constructs a model of anticompetitive exclusive-offer competition between two existing upstream firms. Under exclusive-offer competition, the upstream firm's profit depends on the rival's exclusive offer. If the rival makes an exclusive offer acceptable for the downstream firm, the...
Persistent link: https://www.econbiz.de/10012926190
Persistent link: https://www.econbiz.de/10013158849
This paper extends the Schumpeterian model of creative destruction by allowing followers' cost of innovation to increase in their technological distance from the leader. This assumption is motivated by the observation the more technologically advanced the leader is, the harder it is for a...
Persistent link: https://www.econbiz.de/10012843497
monopoly entrusts pricing decisions to a manager who enjoys monetary rewards but dislikes production effort. We show that cheap …
Persistent link: https://www.econbiz.de/10012721849
We examine an infinite horizon model of quality growth in a durable goods monopoly market. The monopolist generates new …
Persistent link: https://www.econbiz.de/10012723743
The question of market definition for monopolization cases - and thus the issue of the possession of market power by the defendant - is crucial for the outcome of these cases. However, unlike antitrust merger analysis, where the DOJ-FTC Horizontal Merger Guidelines has provided a successful...
Persistent link: https://www.econbiz.de/10012727324
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 … complementary products, which suggests that a monopoly internet service provider will offer net neutrality.There are other means for …
Persistent link: https://www.econbiz.de/10012732764