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Is Bundling Anticompetitive?

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dc.creator Chioveanu, Ioana
dc.date 2007-11-06T07:44:44Z
dc.date 2007-11-06T07:44:44Z
dc.date 2002-06-01
dc.date.accessioned 2017-01-31T00:58:01Z
dc.date.available 2017-01-31T00:58:01Z
dc.identifier http://hdl.handle.net/10261/1851
dc.identifier.uri http://dspace.mediu.edu.my:8181/xmlui/handle/10261/1851
dc.description This paper is based on my PhD dissertation (Ch. 3) written under the supervision of Xavier Vives.
dc.description I analyze the implications of bundling on price competition in a market for complementary products. Using a model of imperfect competition with product differentiation, I identify the incentives to bundle for two types of demand functions and study how they change with the size of the bundle. With an inelastic demand, bundling creates an advantage over uncoordinated rivals who cannot improve by bundling. I show that this no longer holds with an elastic demand. The incentives to bundle are stronger and the market outcome is symmetric bundling, the most competitive one. Profits are lowest and consumer surplus is maximized.
dc.description Financial support from the Spanish Ministry of Education, under project SEJ 2004-08011/Econ is gratefully acknowledged.
dc.language eng
dc.relation UFAE and IAE Working Papers
dc.relation 568.03
dc.rights openAccess
dc.subject Bundling
dc.subject Complementary goods
dc.subject Product differentiation
dc.title Is Bundling Anticompetitive?
dc.type Documento de trabajo


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