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;
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