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School of Economics Seminar Series

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Guest speaker: Jay Pil Choi, Michigan State

Talk title: Tying in Two-Sided Markets with Multi-Homing

This talk analyzes the effects of tying arrangements on market competition and social welfare in two-sided markets when economic agents can engage in multi-homing; that is, they can participate in multiple platforms in order to reap maximal network benefits. The model shows that tying induces more consumers to multi-home and makes platform-specific exclusive contents available to more consumers, which is also beneficial to content providers. As a result, tying can be welfare-enhancing if multi-homing is allowed, even in cases where its welfare impacts are negative in the absence of multi-homing. The analysis thus can have important implications for recent antitrust cases in industries where multi-homing is prevalent.

This lecture is free and open to the public.

Please contact Ruth Uwaifo at 404-385-1100.

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  • Workflow Status:Published
  • Created By:Jupiter
  • Created:06/22/2010
  • Modified By:Fletcher Moore
  • Modified:10/07/2016