Complementary monopolies and multi-product firms

C-Tier
Journal: Economics Letters
Year: 2017
Volume: 157
Issue: C
Pages: 28-30

Authors (3)

Kopel, Michael (Karl-Franzens-Universität Graz) Löffler, Clemens (not in RePEc) Pfeiffer, Thomas (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

According to the classical result on complementary monopolies, a single-product firm unambiguously prefers purchasing complementary inputs from an integrated monopolistic supplier rather than from different non-integrated monopolistic suppliers. In this note, we account for the fact that firms often manufacture multiple products and show that the classical result on complementary monopolies can be reversed in such a case. Purchasing complementary inputs from non-integrated suppliers can be optimal for multi-product firms.

Technical Details

RePEc Handle
repec:eee:ecolet:v:157:y:2017:i:c:p:28-30
Journal Field
General
Author Count
3
Added to Database
2026-01-25