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.
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Volume (Year): 28 (1997) Issue (Month): 3 (Autumn) Pages: 566-583 Download reference. The following formats are available: HTML
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Hollander, Claude & Hollander, Abraham, 2006.
"Triple Play Time,"
MPRA Paper
3552, University Library of Munich, Germany.
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