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discounting schemes lower prices to consumers unless they are predatory - that is to say, unless they exclude rivals and thereby … permit the bundled discounter to price free of competitive restraint. Professor Elhauge argues that bundled discounting can … as that cost/revenue tests for bundled discounting perversely immunize the worst bundled discounting schemes - those that …
Persistent link: https://www.econbiz.de/10013141534
Consumers love to pay less and get more. But are better deals at the retail point of sale always welfare-enhancing? This question points to the puzzle of bundling and bundled discounts. The antitrust concerns raised by a recent set of agreements in the telecommunications sector, allowing for the...
Persistent link: https://www.econbiz.de/10013064277
In this paper, we explore the competitive significance of both bundled and loyalty discounts. The paper proceeds as follows. In Section II, we examine the antitrust treatment of both bundled discounts and loyalty discounts in the United States. In Section III, we examine bundled discounts and...
Persistent link: https://www.econbiz.de/10013247480
analyses should control.” This chapter explains the economic principles behind bundled rebate programs. It also describes the …
Persistent link: https://www.econbiz.de/10013147040
When products are sold in advance, i.e. prior to consumption, consumers trade off an early, uninformed purchase at a low price against a late, informed purchase at a high price. This paper considers the effect of market structure on the prevalence of advance selling. We show that in an...
Persistent link: https://www.econbiz.de/10011446893
We empirically test the hypothesis that the discounts offered by firms to consumers who purchase tickets in advance increase with the intensity of competition. We develop a new measure of competition for which we use the proximity (in departure time) of a given flight to its competitors to infer...
Persistent link: https://www.econbiz.de/10012251366
Persistent link: https://www.econbiz.de/10009501032
show that the Chicago School Theory of a single monopoly surplus that justifies tying, bundling, and loyalty …
Persistent link: https://www.econbiz.de/10014187801
Persistent link: https://www.econbiz.de/10009724956
Discounted utilitarianism and the Ramsey equation prevail in the debate on the discount rate on consumption. The utility discount rate is assumed to be constant and to reflect either the uncertainty about the existence of future generations or a pure preference for the present. The authors...
Persistent link: https://www.econbiz.de/10010417163