Economics

Monopolization with must-haves

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In recent years, an increasing number of monopolization cases have been constructed around the notion of “must-haves”: products that distributors need to carry to “compete effectively.” Given the poor fit of existing theories to cases, we develop a multiproduct framework to address the following questions: What is a must-have? Can must-haves be used as leverage to increase prices in adjacent markets? What determines an item’s “musthavedness”? Is a monopoly product always a must-have? How important are tying and exclusives for monopolization? Does prohibiting them always benefit consumers? The answers to these questions should prove useful to any antitrust analysis involving must-haves, a notion often mentioned in cases without proper economic definition.
Bibliographic citation: IDE, E., MONTERO , J.-P. (2022). Monopolization with must-haves.
Date: 01/05/2022
Author(s): Enrique Ide; Juan-Pablo Montero
Document type: Working Paper
Department: Economics
Sector:
Languages: English