TY  - JOUR
AU  - Carlton,Dennis W.
AU  - Waldman,Michael
TI  - The Strategic Use of Tying to Preserve and Create Market Power in Evolving Industries
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6831
PY  - 1998
Y2  - December 1998
UR  - http://www.nber.org/papers/w6831
L1  - http://www.nber.org/papers/w6831.pdf
N1  - Author contact info:
Dennis W. Carlton
Booth School of Business
University of Chicago
5807 S. Woodlawn Ave.
Chicago, IL 60637
Tel: 847/217-6000
Fax: 312/322-0262
E-Mail: dennis.carlton@chicagobooth.edu

Michael Waldman
Johnson Graduate School of Management
323 Sage Hall
Cornell University
Ithaca, NY  14853-6201
Tel: (607) 255-8631
Fax: (607) 254-4590
E-Mail: mw46@cornell.edu
AB  - 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.
ER  -