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Orders to Supply as Substitutes for Commitments to Aftermarkets

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Abstract

A number of recent antitrust cases in the United States, Canada and Europe have involved durable goods manufacturers refusing to supply proprietary parts to independent service organizations, apparently to monopolize the market for repairs of their products. Earlier work suggested that even if the market for the original product is very competitive, a market imperfection might exist if the manufacturer cannot commit ex ante to pricing repairs at marginal cost.

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Bibliographic Info

Paper provided by Carleton University, Department of Economics in its series Carleton Industrial Organization Research Unit (CIORU) with number 96-02.

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Length: 34 pages
Date of creation: Jun 1996
Date of revision:
Handle: RePEc:car:ciorup:96-02

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Keywords: DURABLE GOODS; atter markets; refusals to deal;

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Cited by:
  1. Zhiqi Chen & Tom Ross, . "Refusals to Deal and Orders to Supply in Competitive Markets," Carleton Industrial Organization Research Unit (CIORU), Carleton University, Department of Economics 94-06, Carleton University, Department of Economics.
  2. Miller, David A., 2008. "Invention under uncertainty and the threat of ex post entry," European Economic Review, Elsevier, vol. 52(3), pages 387-412, April.
  3. Zhiqi Chen & Thomas Ross & W. Stanbury, 1998. "Refusals to Deal and Aftermarkets," Review of Industrial Organization, Springer, Springer, vol. 13(1), pages 131-151, April.
  4. Michael Waldman, 2010. "Competition, Monopoly, and Aftermarkets," Journal of Law, Economics and Organization, Oxford University Press, Oxford University Press, vol. 26(1), pages 54-91, April.
  5. Keisuke Hattori & Amihai Glazer, 2013. "How to Commit to a Future Price," Working Papers 131402, University of California-Irvine, Department of Economics.
  6. Hodaka Morita & Michael Waldman, 2010. "Competition, Monopoly Maintenance, and Consumer Switching Costs," American Economic Journal: Microeconomics, American Economic Association, vol. 2(1), pages 230-55, February.
  7. Paul Isely & Matthew Roelofs, 2004. "Primary market and aftermarket competition in the bicycle component industry," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 36(18), pages 2097-2102.

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