A Leverage Theory of Tying in Two-Sided Markets with Nonnegative Price Constraints
نویسندگان
چکیده
Motivated by recent antitrust cases in markets with zero-pricing, we develop a leverage theory of tying two-sided markets. In the presence nonnegative price constraint, Chicago school critique tie-ins fails to hold. independent products case, provides mechanism circumvent constraint tied market without inviting aggressive responses rival firm. complementary “price squeeze” cannot be used extract surplus from more efficient firm tying. We identify conditions under which is profitable and explore its welfare implications. (JEL D42, K21, L12, L41)
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ژورنال
عنوان ژورنال: American Economic Journal: Microeconomics
سال: 2021
ISSN: ['1945-7669', '1945-7685']
DOI: https://doi.org/10.1257/mic.20180234