TY  - JOUR
TI  - Complementary monopolies and multi-product firms
AB  - 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.
DO  - http://dx.doi.org/10.1016/j.econlet.2017.05.021
SP  - 28
EP  - 30
UR  - http://www.sciencedirect.com/science/article/pii/S0165176517301994
PY  - 2017-01-01
JO  - Economics Letters
AU  - Kopel, Michael 
AU  - Löffler, Clemens 
AU  - Pfeiffer, Thomas 
ER -