Tying as a Response to Demand Uncertainty
The RAND Journal of EconomicsPublished 1 January 1997
Frank Mathewson, Ralph A. Winter
Citations56
SJR quartileQ1
SJR score4.17
SNIP2.43
Generate an AI Snapshot to get a quick, structured summary of this paper.
Study Snapshot
ObjectiveStudy objective
MethodsResearch methodology
PopulationPopulation studied
Sample sizeSample sizes
OutcomesStudy outcomes here
ResultsStudy results comes here
LimitationsResearch study limitations comes here
A concise AI-generated summary of the paper will appear here once you click Generate AI Snapshot.
Abstract
This article examines requirements tying of a competitively supplied good to a monopolized good. It expands the set of market conditions in which this instrument is known to be profitable. With heterogeneous, privately informed buyers, a firm can profit by tying two goods even when demands for the goods are price independent - providing the demands are stochastically dependent. We investigate the profitability of tying as a response to stochastic demand, as well as the effects of tying on prices and the extent of the market served.
Keywords
Economics, Econometrics and FinanceBusiness, Management and Accounting
Operations ResearchMinimizing a Submodular Function on a Lattice
1,360 Citations1978Donald M. Topkis
General conditions under which a collection of optimization problems, with the objective function and the constraint set depending on a parameter, has optimal solutions that are an isotone function of the parameter are given.
American Economic ReviewContracts as a barrier to entry
782 Citations1987Philippe Aghion, Patrick Bolton