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Choi, Jay Pil, Jullien, Bruno
and Lefouili, Yassine
(2017)
Tying in Two-Sided Markets with Multi-Homing: Corrigendum and Comment.
TSE Working Paper, n. 17-850, Toulouse
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Abstract
We identify two issues in Choi's (2010) paper on tying in two-sided markets published in this Journal, and provide solutions to both of them. First, we point out that the equilibrium in the absence of tying requires more restrictive conditions and does not satisfy a natural equilibrium refinement criterion. We offer an alternative timing structure that validates the equilibrium derived in Choi (2010) under the conditions provided there. Second, we show that his equilibrium analysis with tying ignores a profitable deviation. We rectify this analysis under our alternative timing structure and derive the (mixed-strategy) equilibrium with tying. We also show by means of simulations that tying is welfare-enhancing whenever it is profitable, which is consistent with the main finding in Choi (2010).
| Item Type: | Monograph (Working Paper) |
|---|---|
| Sub-title: | Corrigendum and Comment |
| Language: | English |
| Date: | October 2017 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | Tying, Two-Sided Markets, Multi-Homing |
| JEL Classification: | D4 - Market Structure and Pricing L1 - Market Structure, Firm Strategy, and Market Performance L5 - Regulation and Industrial Policy |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 17 Apr 2018 07:43 |
| Last Modified: | 29 Jun 2021 09:08 |
| OAI Identifier: | oai:tse-fr.eu:32110 |
| URI: | https://publications.ut-capitole.fr/id/eprint/25712 |
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