TY  - JOUR
AU  - Carlton,Dennis W.
AU  - Waldman,Michael
TI  - Competition, Monopoly, and Aftermarkets
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8086
PY  - 2001
Y2  - January 2001
UR  - http://www.nber.org/papers/w8086
L1  - http://www.nber.org/papers/w8086.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  - Consider a durable goods producer that potentially has market power in the aftermarkets associated with its products.  An important question is to what extent, if any, should the antitrust laws restrict the firm's behavior in these aftermarkets?  In this paper we explore a number of models characterized by either competition or monopoly in the new-unit market, and show that a variety of behaviors that hurt competition in aftermarkets can, in fact, be efficient responses to potential inefficiencies that can arise in aftermarkets.  Our results should give courts pause before intervening in aftermarkets.
ER  -