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Multiproduct Monopolist and Full-line Forcing: The Efficiency Argument Revisited

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Author Info
Thibaud Vergé () (CMPO and Department of Economics, University of Bristol)

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Abstract

Shaffer (1991) shows that a multiproduct monopolist selling differentiated products through a unique retailer cannot earn monopoly profit using brand specific two-part tariffs and that full-line forcing restores monopoly power. We extend this analysis to more general contracts and shows that full-line forcing is efficient as it increases both industry profits and consumers' surplus.

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File URL: http://www.economicsbulletin.com/2001/volume12/EB-01L40002A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 12 (2001)
Issue (Month): ()
Pages: 1-9
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Handle: RePEc:ebl:ecbull:eb-01l40002

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L4 - Industrial Organization - - Antitrust Issues and Policies

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.:

  1. Margaret E. Slade, 1998. "The Leverage Theory of Tying Revisited: Evidence from Newspaper Advertising," Southern Economic Journal, Southern Economic Association, vol. 65(2), pages 204-222, October.
  2. Slade, M.E., 1997. "The leverage Theory of Tying Revisited," UBC Departmental Archives 97-9, UBC Department of Economics.
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This page was last updated on 2009-12-12.

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