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Bundling of broadband access and other services prevails in telecommunications markets. In converging markets, bundling broadband with video content is feared to foreclose broadband market competition. However, the motivations for bundling are many and complex, as are the forms it can take in...
Persistent link: https://www.econbiz.de/10012956709
I develop a multiproduct nonlinear pricing model where a firm sells both discrete and continuous goods/services to consumers with multidimensional heterogeneity. I derive the optimal selling mechanism and provide primitive conditions under which different bundling strategies arise. Exploiting...
Persistent link: https://www.econbiz.de/10012890534
The burgeoning digital economy is characterized by providers offering their products and services to consumers in bundles. This is hardly surprising, given that the non-rival, non-excludable and infinitely expansible characteristics of digital goods with marginal cost of zero strongly favor use...
Persistent link: https://www.econbiz.de/10012924774
This paper studies, using a two-sided market framework, the impact of regulation on platform's pricing scheme, on investment decisions, on network users' decision to join the network, and on welfare. We take a monopoly platform that serves a continuum of vertically differentiated buyers and...
Persistent link: https://www.econbiz.de/10012710676
For quite a long time, network industries used to be regarded as (natural) monopolies. This was due to these industries having some special characteristics. Network externalities and economies of scale in particular justified the (natural) monopoly thesis. Recently, however, a trend towards...
Persistent link: https://www.econbiz.de/10003285766
Recent claims that online platforms have secured permanent monopolies, protected by barriers to entry from network effects and stockpiles of data, and should be the focus of intense antitrust and regulatory scrutiny, are inconsistent with the economics, technology, and history of online...
Persistent link: https://www.econbiz.de/10012951065
The paper tackles the discussion about vertical separation in the electronic communications sector, in its two main forms functional and structural. The author will argue how mandatory structural separation under certain conditions could be a possible option. The evidence is provided by the...
Persistent link: https://www.econbiz.de/10012956357
Scholars and courts have long debated whether and when "parallel pricing" — adoption of the same price by every firm in a market — should be considered a violation of antitrust law. But there has been a comparative neglect of the importance of "parallel exclusion" — conduct, engaged in by...
Persistent link: https://www.econbiz.de/10013037324
The internet giants - Facebook, Amazon, Netflix and Google, among others - have transformed society with both positive and negative effects. The negative effects have been stark. There have been huge disruptions caused by e-commerce. More recently, subtler, but even more serious negative effects...
Persistent link: https://www.econbiz.de/10012151937
The United States central government enactment of the 1866 Post Roads Act preempted state and municipal telegraph franchise entry barriers. Like present-day telecommunication companies, local franchise regulations were an entry barrier to United States telegraph companies. These pre-1866 state...
Persistent link: https://www.econbiz.de/10012912831