This paper develops a model of pricing to deter entry by a sole supplier of a network good.
This study analyzes the service offerings of Internet Service Providers (ISPs), the commercial suppliers of Internet access in the United States.
We consider innovation incentives in markets where final goods are systems comprising two strictly complementary components, one of which is monopolized.
We study the ‘backbone market’ in the Internet.
Information goods such as books, journals, computer software, music and videos can be copied, shared, resold, or rented.
