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Bundling, information aggregation and entry deterrence

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Author Info
Park, Jongchool
Seo, Kyoungwon
Abstract

This paper provides an explanation for bundling based on its information aggregation effect. Using bundling, the monopolist can hide the information of each monopoly market by aggregating information. We show that the monopolist chooses bundling in an early period because bundling removes potential competition in the following period.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4SWWT0Y-1/2/c61258d1aa48d8f4f20f2105697189b2
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Publisher Info
Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 101 (2008)
Issue (Month): 2 (November)
Pages: 100-102
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:eee:ecolet:v:101:y:2008:i:2:p:100-102

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Related research
Keywords: Bundling Entry deterrence Information aggregation Information asymmetry;

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