The Strategic Use of Tying to Preserve and Create Market Power in Evolving Industries

  title={The Strategic Use of Tying to Preserve and Create Market Power in Evolving Industries},
  author={D. Carlton and Michael Waldman},
  journal={Antitrust & Regulated Industries eJournal},
  • D. Carlton, Michael Waldman
  • Published 1998
  • Business, Economics
  • Antitrust & Regulated Industries eJournal
  • This article investigates how the tying of complementary products can be used to preserve and create monopoly positions. We first show how a monopolist of a product in the current period can use tying to preserve its monopoly in the future. We then show how a monopolist in one market can employ tying to extend its monopoly into a newly emerging market. Our analysis explains how a dominant firm can use tying to remain dominant in an industry undergoing rapid technological change. The analysis… CONTINUE READING
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