Mixed bundling in oligopoly markets
Jidong Zhou ()
Journal of Economic Theory, 2021, vol. 194, issue C
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)
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Working Paper: Mixed Bundling in Oligopoly Markets (2021)
Working Paper: Mixed Bundling in Oligopoly Markets (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:194:y:2021:i:c:s0022053121000740
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