Bundling, information aggregation and entry deterrence
AbstractThis 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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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 101 (2008)
Issue (Month): 2 (November)
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Web page: http://www.elsevier.com/locate/ecolet
Bundling Entry deterrence Information aggregation Information asymmetry;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Adams, William James & Yellen, Janet L, 1976. "Commodity Bundling and the Burden of Monopoly," The Quarterly Journal of Economics, MIT Press, vol. 90(3), pages 475-98, August.
- Whinston, Michael D, 1990.
"Tying, Foreclosure, and Exclusion,"
American Economic Review,
American Economic Association, vol. 80(4), pages 837-59, September.
- Barry Nalebuff, 2004. "Bundling as an Entry Barrier," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 159-187, February.
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