We apply and extend the cost-based approach to bundling and tying under competition developed in Evans and Salinger (2004) to over-the-counter pain relievers and cold medicines. We document that consumers pay much less for tablets with multiple ingredients than they would if they bought tablets...

This paper extends the mark-up rule relating a firm's profit-maximizing price to its marginal cost and its elasticity of residual demand to the news vendor problem with endogenous pricing. Two adjustments are necessary. First, the relevant elasticity of demand is the elasticity of the average...

We apply and extend the cost-based approach to bundling and tying under competition developed in Evans and Salinger (2004) to over-the-counter pain relievers and cold medicines. We document that consumers pay much less for tablets with multiple ingredients than they would if they bought tablets...

For the price-setting newsvendor and general forms of uncertainty, the optimal price and mark-up can be characterized in terms of just the marginal cost of an expected unit sold and the elasticity of the average quantity sold. This paper extends that result to allow for inventory and stock-out...

Gilbert and Katz (2006) (GK) show that allowing (pure) patent bundling increases the incentives for patent owners to enter into “long-term” patent licensing that commits them not to expropriate licensees’ sunk costs in complementary assets with opportunistic licensing terms. We interpret...