Leveraging Monopoly Power by Degrading Interoperability: Theory and Evidence from Computer Markets
---- Acknowledgements ----
We would like to thank Tim Besley, Cristina Caffarra, Francesco Caselli, Sofronis Clerides, Peter Davis, Ying Fan, Jeremy Fox, Georg von Graevenitz, Ryan Kellogg, Christopher Knittel, Mark McCabe, Aviv Nevo, Pierre Regibeau, Bob Stillman, Michael Whinston and participants at seminars at AEA, CEPR, Cyprus, FTC, LSE, Mannheim, Michigan, MIT, Pennsylvania and the NBER for helpful comments. Financial support has come from the ESRC Centre for Economic Performance. In the past Kühn and Van Reenen have acted in a consultancy role for Sun Microsystems. This paper represents the view of the authors and not the European Commission or the National Bureau of Economic Research. The usual disclaimer applies.