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.

Key words: Networks; Compatibility; Antitrust; Complementarity
JEL classification: L13; L40

Published in European Economic Review, vol. 38 (1994), pp. 651-662.

* Stern School of Business, New York, NY 10012, tel. (212) 998-0864, fax (212) 995-4218, e-mail: neconomi@stern.nyu.edu, lwhite@stern.nyu.edu, www: http://raven.stern.nyu.edu/networks/

in Acrobat format. If you do not have an Acrobat reader, you can download it free from Adobe.