Networks and compatibility: Implications for antitrust

Nicholas Economides, Stern School of Business, New York University, Department of Economics, and Lawrence White, Stern School of Business, New York University, Department of Economics

4/04/2008
(Original Publish Date: 3/1/1994)

In this paper we draw crucial parallels between the concepts of compatibility and networks and the more traditional concepts of complementarity and vertical relationships. We also develop the important distinctions between ‘two-way networks’ and ‘one-way networks’. We then apply our framework to a number of current antitrust issues.