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Innovation, Rent Extraction, and Integration in Systems Markets Author info | Abstract | Publisher info | Download info | Related research | Statistics Farrell, Joseph
Katz, Michael L
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We consider innovation incentives in markets where final goods are systems comprising two strictly complementary components, one of which is monopolized. We focus on the case in which the complementary component is competitively supplied and innovation is important. We explore ways in which the monopoly may have incentives to extract efficiency rents in the competitive sector, thus weakening or destroying incentives for independent innovation. We discuss how these problems are affected if the monopolist integrates into supply of the complement. Copyright 2000 by Blackwell Publishing Ltd
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Article provided by Blackwell Publishing in its journal Journal of Industrial Economics .
Volume (Year): 48 (2000)
Issue (Month): 4 (December)
Pages: 413-32
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Handle: RePEc:bla:jindec:v:48:y:2000:i:4:p:413-32Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821
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Keywords: Other versions of this item:
Paper Joseph Farrell & Michael Katz, 2000.
"Innovation, Rent Extraction, and Integration in Systems Markets ,"
Department of Economics, Working Paper Series
1027, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
[Downloadable!] Michael Katz & Joseph Farrell, 2000.
"Innovation, Rent Extraction, and Integration in Systems Markets ,"
Competition Policy Center, Working Paper Series
CPC99-006, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
[Downloadable!] Joseph Farrell & Michael L. Katz, 2003.
"Innovation, Rent Extraction, and Integration in Systems Markets ,"
Development and Comp Systems
0303005, EconWPA.
[Downloadable!] Joseph Farrell and Michael L. Katz., 2000.
"Innovation, Rent Extraction, and Integration in Systems Markets ,"
Economics Working Papers
E00-286, University of California at Berkeley.
[Downloadable!] Joseph Farrell & Michael L. Katz, 2001.
"Innovation, Rent Extraction, and Integration in Systems Markets ,"
Industrial Organization
0012001, EconWPA.
[Downloadable!] References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Jay Pil Choi, 1995.
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Other versions: Economides, Nicholas & Salop, Steven C, 1992.
"Competition and Integration among Complements, and Network Market Structure ,"
Journal of Industrial Economics ,
Blackwell Publishing, vol. 40(1), pages 105-23, March.
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Katz, Michael L., 1989.
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Whinston, Michael D, 1990.
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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