Tying in Two†Sided Markets with Multi†Homing: Corrigendum and Comment

Jay Choi, Bruno Jullien and Yassine Lefouili

Journal of Industrial Economics, 2017, vol. 65, issue 4, 872-886

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].

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://doi.org/10.1111/joie.12156

Related works:
Journal Article: CORRIGENDUM (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jindec:v:65:y:2017:i:4:p:872-886

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-1821

Access Statistics for this article

Journal of Industrial Economics is currently edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven

More articles in Journal of Industrial Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery (contentdelivery@wiley.com).