Skip Navigation



Journal of Law, Economics, and Organization Advance Access published online on April 7, 2009
Journal of Law, Economics, and Organization, doi:10.1093/jleo/ewp006
This Article
Right arrow Full Text
Right arrow Full Text (PDF)
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Similar articles in this journal
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by Carlton, D. W.
Right arrow Articles by Waldman, M.
Right arrow Search for Related Content
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

© The Author 2009. Published by Oxford University Press on behalf of Yale University. All rights reserved. For Permissions, please email: journals.permissions@oxfordjournals.org

Competition, Monopoly, and Aftermarkets

Dennis W. Carlton*

University of Chicago and National Bureau of Economic Research

Michael Waldman**

Cornell University

* Dennis W. Carlton, Booth School of Business, University of Chicago, 5807 South Woodlawn Avenue, Chicago, IL 60637-1610 and National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138. Email: dennis.carlton{at}chicagobooth.edu.

** Michael Waldman, Johnson Graduate School of Management, Cornell University, 323 Sage Hall, Ithaca, NY 14853. NY 14853. Email: mw46{at}cornell.edu.

Consider a durable goods producer that has the option of monopolizing an aftermarket such as repair for its own product. An important question is whether such monopolization reduces welfare? We show that the answer to this question is frequently no. In particular, we explore three models that illustrate various ways in which aftermarket monopolization can reduce inefficiencies and thus increase social welfare and frequently also consumer welfare. Our article shows that efficiency enhancing aftermarket monopolization may be much more common than previous literature suggests. (JEL K21, L12, L49)


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?




Disclaimer: Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.