Consider a monopolist in one market that faces competition in a second market. Bundled loyalty discounts, in which customers receive a price break on the monopoly good in exchange for making all purchases from the monopolist, have ambiguous welfare effects. To analyze such discounts as predatory...

This paper covers the activities of the Economic Analysis Group (EAG), during 2003-2004. It describes the economic analysis undertaken by EAG in several important investigations, litigations, and administrative and appellate matters

Did Microsoft artificial entry barriers (through its bundling and contractual practices) to remove a competitive threat to its Windows operating system or were Microsoft's actions explained by economic efficiency justifications? The paper presents an economic framework for examining this...

This paper discusses the economic issues involved in the government's case against Microsoft. In particular, we examine the competitive effects of Microsoft's contractual restrictions, including the bundling of its Internet browser with the Windows 98 operating system in agreements with computer...