Avenali, Alessandro; D'Annunzio, Anna; Reverberi, … - Dipartimento di Ingegneria Informatica, Automatica e … - 2011
We show how a monopolist in a primary market uses mixed bundling to extract surplus from quality-enhancing investment by a single-product rival in a complementary market, or even force the rival to provide low quality. In our model, bundling does not hinge on commitment ability. Although we...