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Mixed Bundling in Oligopoly Markets

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Abstract

This paper proposes a framework for studying competitive mixed bundling with an arbitrary number of firms. We examine both a firm's incentive to introduce mixed bundling and equilibrium tariffs when all firms adopt the mixed-bundling strategy. In the duopoly case, relative to separate sales, mixed bundling has ambiguous impacts on prices, profit and consumer surplus; with many firms, however, mixed bundling typically lowers all prices, harms firms and benefits consumers.

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  • Jidong Zhou, 2021. "Mixed Bundling in Oligopoly Markets," Cowles Foundation Discussion Papers 2270, Cowles Foundation for Research in Economics, Yale University.
    • Handle: RePEc:cwl:cwldpp:2270
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    3. Drew Vollmer, 2022. "Bundling with Resale," Journal of Industrial Economics, Wiley Blackwell, vol. 70(4), pages 913-938, December.

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    More about this item

    Keywords

    Bundling; Multiproduct pricing; Price competition; Oligopoly;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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