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Tying Arrangements

Learn about agreements that condition the sale of one product on the purchase of another.

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In this lesson, we’ll learn about agreements that condition the sale of one product on the purchase of another. 

I.               Tying Arrangements

Sellers, of course, generally don’t sell a single good or service. A manufacturer of dishwashing machines, for example, might also offer installation services or even its own brand of dish detergent. A seller may wish to expand sales, or to obtain market power in a distinct...