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Mixed bundling in imperfectly competitive industries causes some prices to rise and others to fall. This paper studies … under what conditions mixed bundling works for or against the consumer interest. We find that if buyers incur firm specific … costs or have shop specific tastes then competitive mixed bundling lowers consumer surplus overall and raises profits - the …
Persistent link: https://www.econbiz.de/10005051169
This paper analyses how competition over rebates for customer loyalty across product lines affects firms` pricing and consumers generally. If buyers incur firm specific costs or have shop specific tastes then competitive loyalty discounts lower consumer surplus overall and raise profits - the...
Persistent link: https://www.econbiz.de/10005870205
We study the static and dynamic implications of non-linear pricing schemes (i.e., bundling) for otherwise unrelated … products but for multimarket contact. Bundling is always present in competition but unlikely in a cartel agreement. Although it … brings extra profits to the cartel –sometimes charging a premium rather than a discount for the bundle–, bundling makes …
Persistent link: https://www.econbiz.de/10010774074
the case when bundling contracts are feasible). We show that the unbundling of contracts also leads to downward distorted …
Persistent link: https://www.econbiz.de/10012139155
This paper extends the standard model of bundling to allow products to be substitutes and for products to be supplied … by separate sellers.  Whether integrated or separate, firms have an incentive to introduce a bundling discount when …
Persistent link: https://www.econbiz.de/10009318137
The firms in this model set non-binding list prices before competing for buyers by non-cooperatively granting discounts. Each firm has an incentive to set a high list price if, for example, the customers anchor their willingness-to-pay on the list price. However, list price competition occurs if...
Persistent link: https://www.econbiz.de/10012314193
The paper offers an overview of the literature on bundling in the telecommunications sector and its application in the … Spanish market. We argue that the use of bundling in the provision of services is associated to technological reasons …. Therefore, there appears no need to regulate bundling activities. However, this is not to say that other related telecom markets …
Persistent link: https://www.econbiz.de/10010547193
Produktbündel sind im Wirtschaftsleben allgegenwärtig. Sie können zum einen erhebliche Vorteile für Anbieter und Kunden aufweisen, zum anderen können sie aber auch als Instrument zur Behinderung des Wettbewerbs eingesetzt werden. Die ökonomische und rechtliche Würdigung ist daher sehr...
Persistent link: https://www.econbiz.de/10011601817
While competition between firms producing substitutes is well understood, less is known about rivalry between complementors. We study the interaction between firms in markets with one-way essential complements. One good is essential to the use of the other but not vice versa, as arises with an...
Persistent link: https://www.econbiz.de/10005762709
The paper offers an overview of the literature on bundling in the telecommunications sector and its application in the … Spanish market. We argue that the use of bundling in the provision of services is associated to technological reasons …. Therefore, there appears no need to regulate bundling activities. However, this is not to say that other related telecom markets …
Persistent link: https://www.econbiz.de/10008574231