We present a theory of monopoly protection by means of entry in adjacent markets thathave a common customer base (i.e., envelopment). A firm dominant in its market enters a data richsecondary market and engages in predatory pricing and privacy-policy tying. We definethe latter as conditioning...

I study a one-way flow connections model in which players are heterogeneous with respect to values and the costs of establishing a link. I first show that values and costs asymmetries are crucial in determining the level of connectedness of a network. Interestingly, unconnected equilibria are...