Jeon, Doh-Shin; Menicucci, Domenico - NET Institute - 2007
has a limited number of slots (or shelf space). In this situation, we study how bundling affects competition for slots … upstream firms' products. We find that under bundling, the outcome is always socially efficient but under individual sale, the … competition (i.e. competition from other firms' products), which can create inefficiency. On the contrary, bundling removes the …