On the private and social desirability of mixed bundling in complementary markets with cost savings

C. Halmenschlager and Andrea Mantovani

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: The aim of this paper is to study both the private and the social desirability of a mixed bundling strategy that generates a cost savings effect. We confirm that mixed bundling is the dominant strategy for multiproduct firms, although it may give rise to a prisoner s dilemma. Moreover, we show that mixed bundling may maximise social welfare, provided that cost savings are sufficiently high. Finally, we highlight the parametric regions where the social and the private interests coincide, and those where they do not. The recent evolution of broadband telecommunications services provides an ideal framework to apply our theoretical predictions.

JEL-codes: D43 L13 L41 (search for similar items in EconPapers)
Date: 2015-11
New Economics Papers: this item is included in nep-com and nep-ind
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Related works:
Journal Article: On the private and social desirability of mixed bundling in complementary markets with cost savings (2017)
Working Paper: On the private and social desirability of mixed bundling in complementary markets with cost savings (2017)
Working Paper: On the private and social desirability of mixed bundling in complementary markets with cost savings (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:wp1038

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