EconPapers    
Economics at your fingertips  
 

Mixed bundling may hinder collusion

Edmond Baranes, Marion Podesta () and Jean-Christophe Poudou ()

Research in Economics, 2016, vol. 70, issue 4, 638-658

Abstract: We study the incentives to collude when firms use mixed bundling or independent pricing strategies for the sale of two components of a composite good. The main finding is that collusion is less sustainable under mixed bundling, because this increases the profitability of deviations from the collusive path. The result is robust to extensions with an endogenous choice of the mode of competition (with bundling or independent pricing) and to competition in quantities. These results offer a novel argument against a per se rule concerning bundling in antitrust policy.

Keywords: Mixed bundling; Collusion; Price competition (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1090944316300886
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Mixed bundling may hinder collusion (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:reecon:v:70:y:2016:i:4:p:638-658

Access Statistics for this article

Research in Economics is currently edited by Federico Etro

More articles in Research in Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-07-16
Handle: RePEc:eee:reecon:v:70:y:2016:i:4:p:638-658