I assess the private profitability of tying under circumstances where the standard efficiency defenses do not necessarily hold and demonstrate that tying is profitable under a wide range of circumstances. I also examine data from the Canadian newspaper-advertising industry and argue that price discrimination, cost saving, and quality control are unlikely motives for tying in this market. Nevertheless, with newspapers, tying and monopoly power go hand in hand.
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Paper provided by Universite Aix-Marseille III in its series G.R.E.Q.A.M. with number
97b02.
Length: 24 pages Date of creation: 1995 Date of revision: Handle: RePEc:fth:aixmeq:97b02
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Find related papers by JEL classification: L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance L4 - Industrial Organization - - Antitrust Issues and Policies L6 - Industrial Organization - - Industry Studies: Manufacturing D4 - Microeconomics - - Market Structure and Pricing
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