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The Strategic Use of Trying to Preserve and Create Market Power in Evolving Industries
Oleh:
Carlton, Dennis W.
;
Waldman, Michael
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
The Rand Journal of Economics vol. 33 no. 2 (2002)
,
page 194-220.
Topik:
MARKET POWER
;
strategic
;
market power
;
evolving industries
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
RR10.6
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
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 focuses on entry costs and network externalities. We also relate our analysis to the Microsoft case.
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