A General Equilibrium Model with Impersonal Networking Decisions and Bundling Sales

Ke Li

Chapter 6 in The Economics of E-Commerce and Networking Decisions, 2003, pp 101-133 from Palgrave Macmillan

Abstract: Abstract The purpose of this chapter is to investigate the function of a particular type of bundling sales in exploiting the network effect of the division of labour, and in promoting increases in productivity. First we shall survey the existing literature on bundling and tying sales. Then, we move on to consider some common internet phenomena which cannot be predicted by the existing approaches. Finally, we will formulate the effects of bundling sales on the network size of the division of labour by drawing from the literature on endogenous specialization and the network effect of division of labour.

Keywords: Transaction Cost; General Equilibrium; Network Effect; Aggregate Productivity; Monopoly Power (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-4039-3837-4_6

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DOI: 10.1057/9781403938374_6

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