Michael D. Whinston : Tying in Markets with Network Effects
Channel: Toulouse School of Economics (Ecole d'économie de Toulouse - TSE)
Date: 2023-04-21

The TSE Digital Center organizes an online monthly seminar series on the economics of platforms. More information about this series on 
tse-fr.eu/digital. 

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👉 Speaker : Michael D. Whinston (MIT Sloan School of Managment) 
📃 Title: Tying in Markets with Network Effects

⏲️  
0:00 Intro 
0:07 Prensentation 
0:40 Tying/ Bundling 
2:10 Intellectual History 
4:40 Whinston 1990 
8:45 A Leverage Theory of Tying with Network Effects
14:15 Plan of Talk 
15:04 Illustrative Example 
16:51 Assumptions 
18:26 Independent-Pricing Equilibrium (No Tying) 
20:24 The Existence of a Profitable Bundling Deviation 
26:51 Model with Independant Product
 27:02 Market A (Tying Market) 
28:33 Remark: Market A as a Two-sided Market 
29:15 Market B (Tied Market) 
29:50 Independent Pricing Game (No Tying) 
30:20 Analyses of Tying: Firm 1 is now allowed to tie 
34:29 No independent pricing equilibrium exists 
36:25 Our main result: firm 1 ties and monopolizes market B 
38:03 Welfare
38:54 Complements 
39:44 Potential Applications 
42:18 Conclusion 
43:00 Discussion Vincenzo Denicolo