Multiproduct monopolist and full-line forcing: The efficiency argument revisited
Multiproduct monopolist and full-line forcing: The efficiency argument revisited
Shaffer (1991) shows that a multiproduct monopolist selling differentiated products through a unique retailer cannot earn monopoly profit using brand specific two-part tariffs and that full-line forcing restores monopoly power. We extend this analysis to more general contracts and shows that full-line forcing is efficient as it increases both industry profits and consumers' surplus.
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Vergé, Thibaud
d4cfb087-7fd2-4612-8ebf-7057dc381d2e
2001
Vergé, Thibaud
d4cfb087-7fd2-4612-8ebf-7057dc381d2e
Vergé, Thibaud
(2001)
Multiproduct monopolist and full-line forcing: The efficiency argument revisited.
Economics Bulletin, 12 (4), .
Abstract
Shaffer (1991) shows that a multiproduct monopolist selling differentiated products through a unique retailer cannot earn monopoly profit using brand specific two-part tariffs and that full-line forcing restores monopoly power. We extend this analysis to more general contracts and shows that full-line forcing is efficient as it increases both industry profits and consumers' surplus.
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Published date: 2001
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Local EPrints ID: 33361
URI: http://eprints.soton.ac.uk/id/eprint/33361
ISSN: 1545-2921
PURE UUID: 3bd806e1-593f-4c25-8760-c43d96e188c9
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Date deposited: 18 May 2006
Last modified: 11 Dec 2021 15:20
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Author:
Thibaud Vergé
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