Multiproduct Monopolist and Full-line Forcing: The Efficiency Argument Revisited

Thibaud Vergé

Economics Bulletin, 2001, vol. 12, issue 4, 1-9

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.

JEL-codes: L4 (search for similar items in EconPapers)
Date: 2001-10-04
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Citations: View citations in EconPapers (2)

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