Choi, Jay Pil, Jullien, Bruno and Lefouili, Yassine
(2017)
Tying in two-sided markets with multi-homing: Corrigendum and Comment.
Journal of Industrial Economics, vol. 65 (n° 4).
pp. 872-886.
This is the latest version of this item.
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: | Article |
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Sub-title: | Corrigendum and Comment |
Language: | English |
Date: | December 2017 |
Refereed: | Yes |
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) |
Site: | UT1 |
Date Deposited: | 13 Apr 2018 09:18 |
Last Modified: | 01 Jul 2021 09:21 |
OAI Identifier: | oai:tse-fr.eu:32111 |
URI: | https://publications.ut-capitole.fr/id/eprint/25713 |
Available Versions of this Item
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Tying in Two-Sided Markets with Multi-Homing. (deposited 17 Apr 2018 07:43)
- Tying in two-sided markets with multi-homing. (deposited 13 Apr 2018 09:18) [Currently Displayed]