Avenali, Alessandro; Anna D’Annunzio; Reverberi, … - In: Review of Industrial Organization 43 (2013) 3, pp. 221-241
We investigate how bundling affects investment in product quality, and derive welfare implications. A monopolist in a primary market competes with a rival in a complementary market. Bundling is the monopolist’s preferred strategy, since it either extracts surplus from the rival’s investment,...