aktuelle Publikationen (ab 2015)

Complementary monopolies and multi-product firms

Author(s)
Michael Kopel, Clemens Löffler, Thomas Pfeiffer
Abstract

According to the classical result on complementary monopolies, a single-product firm unambiguously prefers purchasing complementary inputs from an integrated monopolistic supplier rather than from different non-integrated monopolistic suppliers. In this note, we account for the fact that firms often manufacture multiple products and show that the classical result on complementary monopolies can be reversed in such a case. Purchasing complementary inputs from non-integrated suppliers can be optimal for multi-product firms.

Organisation(s)
Department of Accounting, Innovation and Strategy
External organisation(s)
Wirtschaftsuniversität Wien (WU), Karl-Franzens-Universität Graz
Journal
Economics Letters
Volume
157
Pages
28-30
No. of pages
3
ISSN
0165-1765
DOI
https://doi.org/10.1016/j.econlet.2017.05.021
Publication date
08-2017
Peer reviewed
Yes
Austrian Fields of Science 2012
502052 Business administration
Keywords
ASJC Scopus subject areas
Economics and Econometrics, Finance
Portal url
https://ucris.univie.ac.at/portal/en/publications/complementary-monopolies-and-multiproduct-firms(d85fa6e3-bf1c-4769-8917-cf808feb9065).html