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Bundling and the Product Specification of Excludable Public Goods: the Case of Pay TV

Claude Crampes () and A. Hollander

Working Papers from Toulouse - GREMAQ

Abstract: Under a subscriber-supported television, specification should be viewed as a multidimensional problem. First, there is the traditional question how to allocate a number of channels -carried either by cable or satellite- among different program types. Second, there is the issue of packaging. What is the number of distinct bundles a profit maximising cable or satellite operator will let subscribers choose from, and what is the optimal composition of each package, i.e., how many channels devoted to each particular type of programming shoudl each bundle contain. The paper throws a bridge between the literature on bundling and the literature on product specification by focusing on the question how specifications are chosen when the seller determines whether to engage in pure or mixed bundling.

Keywords: PUBLIC GOODS; SPECIFICATIONS; TELEVISION (search for similar items in EconPapers)
JEL-codes: H40 (search for similar items in EconPapers)
Pages: 19 pages
Date: 1998
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