Strategic and welfare implications of bundling
نویسنده
چکیده
A standard oligopoly model of bundling shows that bundling by a firm with a monopoly over one product has a strategic effect because it changes the substitution relationships between the goods among which consumers choose. Bundling in appropriate proportions is privately profitable, reduces rivals’ profits and overall welfare, and may drive rivals from the market. 1999 Elsevier Science S.A. All rights reserved.
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