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show that the Chicago School Theory of a single monopoly surplus that justifies tying, bundling, and loyalty …
Persistent link: https://www.econbiz.de/10014187801
Critics of current tying doctrine argue that metering ties can increase consumer welfare and total welfare without increasing output and that they generally increase both welfare measures. Contrary to those claims, we prove that metering ties always lower consumer welfare and total welfare...
Persistent link: https://www.econbiz.de/10012971898
Chicago School theorists have argued that tying cannot create anticompetitive effects because there is only a single monopoly profit. Some Harvard School theorists have argued that tying doctrine’s quasi-per se rule is misguided because tying cannot create anticompetitive effects without...
Persistent link: https://www.econbiz.de/10014210407
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...
Persistent link: https://www.econbiz.de/10012706711
We here want to analyze how the imperfect competition mark-up and pass-through are transmitted through the production chain and how they change, as a function of the number of firms existing at each production stage. In order to have an analytical closed form solution, we use the standard linear...
Persistent link: https://www.econbiz.de/10014034784
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...
Persistent link: https://www.econbiz.de/10014207353
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,...
Persistent link: https://www.econbiz.de/10013142174
As technology and interconnectivity have continued to flourish, so too has an important and complex form of enterprise: the platform. Services like Uber, Google Search, Hulu, and American Express cater to distinct but deeply-interdependent “sides” of customers that derive value or revenues...
Persistent link: https://www.econbiz.de/10012927817
the economics literature regarding the details of McGee's contribution to our understanding of predatory pricing theory …
Persistent link: https://www.econbiz.de/10013088386
We provide a general definition of bundling that encompasses the bundling of two or more objects over sets of three or more objects. Bundled objects may be units of the same product, different products, or both. Such bundling encompasses a range of controversial pricing practices that have drawn...
Persistent link: https://www.econbiz.de/10012921218