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| Author: | Choi, J.P. |
| Title: | Tying in two-sided markets with multi-homing |
| Journal: | Journal of Industrial Economics
2010 : SEP, VOL. 58:3, p. 607-626 |
| Index terms: | competition antitrust social welfare models |
| Language: | eng |
| Abstract: | This article analyzes the effects of tying on market competition and social welfare in two-sided markets when economic agents can practice multi-homing by engaging in multiple platforms to reap maximal network benefits. The model demonstrates that tying causes more consumers to multi-home and makes platform-specific exclusive content available to more consumers, favourable to content providers. Resulting from this, tying can be welfare-enhancing when multi-homing is allowed, even if its welfare impacts may be negative in the absence of multi-homing. The analysis thus can have important implications for recent antitrust cases in branches where multi-homing is common. |
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