EconPapers    
Economics at your fingertips  
 

Dominance and Competitive Bundling

Sjaak Hurkens, Doh-Shin Jeon and Domenico Menicucci

No 13-423, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: We study bundling by a dominant multi-product firm facing competition from a rival multi-product firm. Compared to competition under independent pricing, competition under pure bundling reduces (increases) each firm's profit for low (high) levels of dominance, while for intermediate levels of dominance, it increases the dominant firm's profit but reduces the rival's profit. The latter result provides a justification for the use of contractual bundling to build entry barrier. When we allow for mixed bundling, we find a threshold level of dominance above which the unique outcome is the one under pure bundling.

JEL-codes: D43 L13 L41 (search for similar items in EconPapers)
Date: 2013-08, Revised 2018-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
https://www.tse-fr.eu/sites/default/files/TSE/docu ... /2018/wp_tse_423.pdf Full text (application/pdf)

Related works:
Journal Article: Dominance and Competitive Bundling (2019) Downloads
Working Paper: Dominance and Competitive Bundling (2018) 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:tse:wpaper:27441

Access Statistics for this paper

More papers in TSE Working Papers from Toulouse School of Economics (TSE) Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-12-05
Handle: RePEc:tse:wpaper:27441