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Bundling as a Facilitating Device: A Reinterpretation of Leverage Theory

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  • Seidmann, Daniel J

Abstract

Tying-good monopolists that extract full consumer surplus from independent sales of their tying good may, nevertheless, choose to bundle in order to induce a favorable response by their tied-market rivals. In particular, bundling may facilitate supracompetitive prices for the tied good. Copyright 1991 by The London School of Economics and Political Science.

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Bibliographic Info

Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 58 (1991)
Issue (Month): 232 (November)
Pages: 491-99

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Handle: RePEc:bla:econom:v:58:y:1991:i:232:p:491-99

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Cited by:
  1. Reisinger, Markus, 2004. "The Effects of Product Bundling in Duopoly," Discussion Papers in Economics 477, University of Munich, Department of Economics.
  2. Edmond Baranes, 2006. "Bundling and Collusion on Communications Markets," Working Papers 06-17, NET Institute, revised Oct 2006.
  3. Eugen Kovac, 2004. "Tying by a Non-monopolist," CERGE-EI Working Papers wp225, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  4. repec:hal:wpaper:halshs-00590553 is not listed on IDEAS
  5. Sue Mialon, 2009. "Product-bundling and Incentives for Merger and Strategic Alliance," Emory Economics 0907, Department of Economics, Emory University (Atlanta).
  6. Daniel Flores Curiel, 2010. "La regulación del tamaño de los lotes habitacionales: un modelo de discriminación de precios," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 25(2), pages 407-424.
  7. Almeida Costa, Luis & Dierickx, Ingemar, 2002. "Licensing and bundling," International Journal of Industrial Organization, Elsevier, vol. 20(2), pages 251-267, February.
  8. Budzinski, Oliver & Wacker, Katharina, 2007. "The prohibition of the proposed Springer-ProSiebenSat.1-Merger: how much economics in German merger control?," IBES Diskussionsbeiträge 160, University of Duisburg-Essen, Faculty for Economics and Business Administration.

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