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Remedies for tying in computer applications

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  • Gans, Joshua S.

Abstract

Recent anti-trust decisions have proposed remedies for tying of different computer software and applications. The remedies have drawn criticism for being ineffectual. This paper develops a model tailored to deal with the specific issue of tying in computer applications. It provides a rationale for such tying and also any associated harm to social welfare. It then examines proposed remedies and finds conditions under which those remedies will be effective in improving social welfare.

Suggested Citation

  • Gans, Joshua S., 2011. "Remedies for tying in computer applications," International Journal of Industrial Organization, Elsevier, vol. 29(5), pages 505-512, September.
  • Handle: RePEc:eee:indorg:v:29:y:2011:i:5:p:505-512
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    References listed on IDEAS

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    1. Leonard K. Cheng & Jae Nahm, 2007. "Product boundary, vertical competition, and the double mark-upproblem," RAND Journal of Economics, RAND Corporation, vol. 38(2), pages 447-466, June.
    2. Whinston, Michael D, 1990. "Tying, Foreclosure, and Exclusion," American Economic Review, American Economic Association, vol. 80(4), pages 837-859, September.
    3. Dennis W. Carlton & Joshua S. Gans & Michael Waldman, 2010. "Why Tie a Product Consumers Do Not Use?," American Economic Journal: Microeconomics, American Economic Association, vol. 2(3), pages 85-105, August.
    4. Michael D. Whinston, 2001. "Exclusivity and Tying in U.S. v. Microsoft: What We Know, and Don't Know," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 63-80, Spring.
    5. Jay Pil Choi, 2004. "Antitrust Analysis of Tying Arrangements," CESifo Working Paper Series 1336, CESifo Group Munich.
    6. Choi, Jay Pil & Stefanadis, Christodoulos, 2001. "Tying, Investment, and the Dynamic Leverage Theory," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 52-71, Spring.
    7. Dennis W. Carlton & Michael Waldman, 2002. "The Strategic Use of Tying to Preserve and Create Market Power in Evolving Industries," RAND Journal of Economics, The RAND Corporation, vol. 33(2), pages 194-220, Summer.
    8. Matutes, Carmen & Regibeau, Pierre, 1992. "Compatibility and Bundling of Complementary Goods in a Duopoly," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 37-54, March.
    9. Ayres Ian & Nalebuff Barry, 2005. "Going Soft on Microsoft? The EU's Antitrust Case and Remedy," The Economists' Voice, De Gruyter, vol. 2(2), pages 1-12, January.
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    Cited by:

    1. Dennis W. Carlton & Joshua S. Gans & Michael Waldman, 2010. "Why Tie a Product Consumers Do Not Use?," American Economic Journal: Microeconomics, American Economic Association, vol. 2(3), pages 85-105, August.
    2. repec:kap:regeco:v:51:y:2017:i:3:d:10.1007_s11149-017-9325-y is not listed on IDEAS
    3. Gans, Joshua S., 2012. "Mobile application pricing," Information Economics and Policy, Elsevier, vol. 24(1), pages 52-59.

    More about this item

    Keywords

    Tying Software Microsoft Remedies;

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