search query: @journal_id 1275 / total: 203
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Author: | Mathewson, F. Winter, R. |
Title: | Tying as a response to demand uncertainty |
Journal: | RAND Journal of Economics
1997 : AUTUMN, VOL. 28:3, p. 566-583 |
Index terms: | DEMAND UNCERTAINTY ECONOMICS |
Language: | eng |
Abstract: | The article examines requirements tying of a competitively supplied good to a monopolized good. It expands the set of market conditions in which this instrument is known to be profitable. With heterogeneous, privately informed buyers, a firm can profit by tying two goods even when the demands for the goods are price-independent -- providing the demands are stochastically dependent. The authors investigate the profitability of tying as a response to stochastic demand, as well as the effects of tying on prices and the extent of the market served. |
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