Monopolization with must-haves
By: Ide, Enrique and Montero, Juan-Pablo
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Material type: 
BookPublisher: American Economic Journal: Microeconomics Description: 16(3), Aug, 2024: p.284-320.
In:
American Economic Journal: MicroeconomicsSummary: An increasing number of monopolization cases have been constructed around the notion of "must-have" items: products that distributors must carry to "compete effectively." Motivated by these cases, we consider a multiproduct setting where upstream suppliers sell their products through competing distributors offering one-stop-shopping convenience to consumers. We show the emergence of products that distributors cannot afford not to carry if their rivals do. A supplier of such products can exploit this must-have property, along with tying and exclusivity provisions, to monopolize adjacent, otherwise-competitive markets. Policy interventions that ban tying or exclusivity provisions may prove ineffective or even backfire.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/mic.20230018
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
Articles
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Indian Institute of Public Administration | 16(3), Aug, 2024: p.284-32 | Available | AR133221 |
An increasing number of monopolization cases have been constructed around the notion of "must-have" items: products that distributors must carry to "compete effectively." Motivated by these cases, we consider a multiproduct setting where upstream suppliers sell their products through competing distributors offering one-stop-shopping convenience to consumers. We show the emergence of products that distributors cannot afford not to carry if their rivals do. A supplier of such products can exploit this must-have property, along with tying and exclusivity provisions, to monopolize adjacent, otherwise-competitive markets. Policy interventions that ban tying or exclusivity provisions may prove ineffective or even backfire.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/mic.20230018
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