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Tying

3 ISSUES IN COMPETITION LAW AND POLICY 1859, 2008
2008
  • 0
    Citations
  • 2,501
    Usage
  • 2
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Usage
    2,501
    • Abstract Views
      2,198
    • Downloads
      303
  • Captures
    2
    • Readers
      2
      • SSRN
        2
  • Ratings
    • Download Rank
      201,148

Paper Description

This chapter first reviews economic theories for why firms tie their products and then discusses our views concerning what this review implies concerning optimal antitrust policy for tying cases. The review considers efficiency rationales for tying, price discrimination rationales, and various exclusionary rationales that have recently been put forth. The chapter specifically discusses the Chicago School view that tying should raise no antitrust concern and explains when that logic breaks down. In our discussion of optimal antitrust policy concerning tying, ourmain point is that, because of the prevalence of efficiency-driven tying in real world markets and the difficulty that courts have in reliably identifying all the welfare consequences of a tie, in general there should be a high hurdle required for intervention in tying cases.

Bibliographic Details

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