Hurkens, Sjaak, Jeon, Doh-Shin and Menicucci, Domenico (2013) Dominance and Competitive Bundling. TSE Working Paper, n. 13-423, Toulouse
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Abstract
We study bundling by a dominant multi-product firm facing competition from a rival multi-product firm. Compared to competition under independent pricing, competition under pure bundling reduces (increases) each firm's profit for low (high) levels of dominance, while for intermediate levels of dominance, it increases the dominant firm's profit but reduces the rival's profit. The latter result provides a justification for the use of contractual bundling to build entry barrier. When we allow for mixed bundling, we find a threshold level of dominance above which the unique outcome is the one under pure bundling.
Item Type: | Monograph (Working Paper) |
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Language: | English |
Date: | 13 August 2013 |
Place of Publication: | Toulouse |
JEL Classification: | D43 - Oligopoly and Other Forms of Market Imperfection L13 - Oligopoly and Other Imperfect Markets L41 - Monopolization; Horizontal Anticompetitive Practices |
Subjects: | B- ECONOMIE ET FINANCE |
Divisions: | TSE-R (Toulouse) |
Institution: | Université Toulouse 1 Capitole |
Site: | UT1 |
Date Deposited: | 09 Jul 2014 17:37 |
Last Modified: | 02 Apr 2021 15:48 |
OAI Identifier: | oai:tse-fr.eu:27441 |
URI: | https://publications.ut-capitole.fr/id/eprint/15699 |
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