This paper shows that firms producing homogeneous goods (e.g. Bertrand competitors) can achieve supernormal profits using interfirm bundled discounts, which connect their product with a specific brand of other firm with market power. By committing to a price discount exclusively to buyers of a...

In network industries, we often observe frequent upgrades of existing products as well as delayed introductions of new products. In order to explain these contrasting phenomena, this paper examines a durable-good monopolist's incentive for R&D in- vestment in new product development in a market...

This paper investigates whether fixed and mobile broadband services are substitutes or complements using firm-level panel data obtained from three major telecommunications operators in South Korea. We employ a multi-level demand model based on Hausman et al. (1994), which allow for the...