@techreport{NBERw6831, title = "The Strategic Use of Tying to Preserve and Create Market Power in Evolving Industries", author = "Dennis W. Carlton and Michael Waldman", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "6831", year = "1998", month = "December", URL = "http://www.nber.org/papers/w6831", abstract = {This paper investigates how the tying of complementary products can be used to preserve and extend monopoly positions. We first show how a firm that is a monopolist of a product in the current period can use tying to preserve its monopoly position in future periods. We then show using related arguments how a monopolist in one market can employ tying to extend its monopoly position into a newly emerging market. The analysis focuses on the importance of entry costs and network externalities. The paper includes a discussion of antitrust implications.}, }