CHUNG, HUI-LING; CHEN, HUNG-YI; HU, JIN-LI; LIN, YAN-SHU - In: Hitotsubashi Journal of Economics 55 (2014) 2, pp. 147-165
consumers. This paper analyzes quality competition and its effect on consumer surplus for the case of commodity bundling by a … negatively affects the quality of a competing good, consumer surplus, and welfare. When the firm bundles a low quality good … instead, bundling raises the quality of a competing good, enhances consumer surplus, and may increase the welfare. …