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The Role of Tying Contracts for the Optimal Marketing of Durable Products

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  • Ulrich Kamecke
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    Abstract

    Tying contracts are well-known for their anti-competitive potential. This paper questions their negative image by showing that tying contracts can be necessary to implement price signals which overcome problems of asymmetric information in the introductory phase of a new durable product. The argument is applied to two antitrust cases against tying arrangements, the German Meto case and the US American SCM case.

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    Bibliographic Info

    Paper provided by University of Bonn, Germany in its series Discussion Paper Serie A with number 488.

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    Length: 17 pages
    Date of creation: Aug 1995
    Date of revision:
    Handle: RePEc:bon:bonsfa:488

    Contact details of provider:
    Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany
    Fax: +49 228 73 6884
    Web page: http://www.bgse.uni-bonn.de

    Related research

    Keywords: Tying contracts; price signals; antitrust policy;

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