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We discuss the effect of pricing strategies by two firms on the total firm revenue, consumer and total welfare using simulation and numerical analysis. We consider pricing decisions for mixed bundling and where each firm offers two closely related products as well as a bundle. Bundling is a key...
Persistent link: https://www.econbiz.de/10012889041
The burgeoning digital economy is characterized by providers offering their products and services to consumers in bundles. Consequently, firms, policy-makers, competition authorities and courts are challenged to consider the actual and possible effects of bundling on profits, consumer and total...
Persistent link: https://www.econbiz.de/10014032728
The burgeoning digital economy is characterized by providers offering their products and services to consumers in bundles. This is hardly surprising, given that the non-rival, non-excludable and infinitely expansible characteristics of digital goods with marginal cost of zero strongly favor use...
Persistent link: https://www.econbiz.de/10012924774
Persistent link: https://www.econbiz.de/10012593492
The New Zealand Government is subsidising the nationwide deployment of an Ultrafast Broadband Network (UFB). However, government funds will not be provided to firms that have a significant retail broadband market presence. If the incumbent telecommunications provider Telecom New Zealand (already...
Persistent link: https://www.econbiz.de/10014181533
This paper sets out to identify diffusion patterns evident in the market for broadband Internet connections. We hypothesise that in the absence of supply-side constraints, the diffusion patterns are determined by the interaction of learning effects, vintage capital and information barriers,...
Persistent link: https://www.econbiz.de/10014083049