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The leverage Theory of Tying Revisited

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Author Info
Slade, M.E.

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Abstract

I assess the 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 aloso 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. Neverthless, with newspapers, tying and monpoly power go hand in hand.

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Publisher Info
Paper provided by UBC Department of Economics in its series UBC Departmental Archives with number 97-9.

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Length: 27 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:ubc:bricol:97-9

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Related research
Keywords: ADVERTISING ; SALES;

Other versions of this item:

Find related papers by JEL classification:
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
D40 - Microeconomics - - Market Structure and Pricing - - - General

Cited by:
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  1. Thibaud Verge, 2002. "Portfolio Analysis in European Merger Control: An Economic Analysis," The Centre for Market and Public Organisation 02/046, Department of Economics, University of Bristol, UK. [Downloadable!]
  2. Thibaud Vergé, 2003. "Portfolio Effects and Merger Control: Full-line Forcing as an Entry Deterrence Strategy," Industrial Organization 0301010, EconWPA. [Downloadable!]
  3. Stephen Martin, 1998. "Strategic and Welfare Implications of Bundling," CIE Discussion Papers 1998-14, University of Copenhagen. Department of Economics. Centre for Industrial Economics. [Downloadable!]
    Other versions:
  4. Thibaud Vergé, 2001. "Multiproduct Monopolist and Full-line Forcing: The Efficiency Argument Revisited," Economics Bulletin, Economics Bulletin, vol. 12, pages 1-9. [Downloadable!]
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This page was last updated on 2009-12-3.

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