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In this paper, we study how access pricing affects network competition when subscription demand is elastic and each network uses non-linear prices and can apply termination-based price discrimination. In the case of a fixed per minute termination charge, we find that a reduction of the...
Persistent link: https://www.econbiz.de/10008472078
We study bundling by a dominant multi-product rm facing competition from a rival multi-product rm. Compared to competition under independent pricing, competition under pure bundling reduces (increases) each rm's prot for low (high) levels of dominance, while for intermediate levels of dominance,...
Persistent link: https://www.econbiz.de/10010898244