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Mixed Bundling in Oligopoly Markets

Jidong Zhou ()

No 2270, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: This paper proposes a framework for studying competitive mixed bundling with an arbitrary number of firms. We examine both a firm's incentive to introduce mixed bundling and equilibrium tariffs when all firms adopt the mixed-bundling strategy. In the duopoly case, relative to separate sales, mixed bundling has ambiguous impacts on prices, profit and consumer surplus; with many firms, however, mixed bundling typically lowers all prices, harms firms and benefits consumers.

Keywords: Bundling; Multiproduct pricing; Price competition; Oligopoly (search for similar items in EconPapers)
JEL-codes: D43 L13 L15 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2021-01
New Economics Papers: this item is included in nep-com, nep-cwa, nep-gth, nep-ind, nep-mic and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Journal Article: Mixed bundling in oligopoly markets (2021) Downloads
Working Paper: Mixed Bundling in Oligopoly Markets (2019) Downloads
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