A PYMNTS Company

The Analysis of Tying Cases: A Primer

By  |  December 19, 2015

Jean Tirole, Apr 01, 2005

This primer analyzes factors that make ties more likely either to hurt or to benefit consumers. It first identifies factors that influence where the impact of tying on competition in the tied market stands, ranging from little impact on the rivals’ ability to compete to total exclusion of competitors. Then, after reviewing anticompetitive and efficiency-enhancing motives for tying, it argues that tying should be submitted to a rule of reason standard. Furthermore, tying should not be a distinct offense but considered as one possible mechanism of predation. Like many other corporate strategies that make one’s products attractive to consumers, tying has the potential of hurting competitors, and, therefore, is just one in a large range of strategies that can be employed to prey on them. Finally, the primer discusses the costs and benefits of adopting a predation-based standard.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Links to Full Content