Working paper
A more general theory of commodity bundling
- Abstract:
- This paper discusses the incentive to bundle when consumer valuations are non-additive and/or when products are supplied by separate sellers. Whether integrated or separate, a firm has an incentive to introduce a bundle discount when demand for the bundle is more elastic than the overall demand for products. When separate sellers coordinate on a bundle discount, they can use the discount to relax competition, which can harm welfare.
- Publication status:
- Published
Actions
Authors
- Publisher:
- University of Oxford
- Series:
- Department of Economics Discussion Paper Series
- Publication date:
- 2012-09-28
- Paper number:
- 624
- Keywords:
- Pubs id:
-
1143798
- Local pid:
-
pubs:1143798
- Deposit date:
-
2020-12-15
Terms of use
- Copyright date:
- 2012
- Rights statement:
- Copyright 2012 The Author(s)
If you are the owner of this record, you can report an update to it here: Report update to this record