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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
We discuss the effect of pricing strategies by two firms on the total firm revenue, consumer and total welfare using simulation and numerical analysis. We consider pricing decisions for mixed bundling and where each firm offers two closely related products as well as a bundle. Bundling is a key...
Persistent link: https://www.econbiz.de/10012889041
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 sets out to identify diffusion patterns evident in the market for broadband Internet connections. We hypothesise that in the absence of supply-side constraints, the diffusion patterns are determined by the interaction of learning effects, vintage capital and information barriers,...
Persistent link: https://www.econbiz.de/10014083049