Remedies for Tying in Computer Applications

Joshua S. Gans, Melbourne Business School, University of Melbourne

Abstract

Recent anti-trust decisions have proposed remedies for tying of different computer software and applications. The remedies have drawn criticism for being ineffectual. This paper develops a model tailored to deal with the specific issue of tying in computer applications. It provides a rationale for such tying and also any associated harm to social welfare. It then examines proposed remedies and finds conditions under which those remedies will be effective in improving social welfare.