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This paper investigates the strategic effect of bundling when a multi-product firm producing two complements faces … competition in both markets. I consider a demand structure where both Cournot and Bertrand competition can be evaluated. Bundling … by the multi-product firm. Bundling drives prices up, and not only consumer surplus, but also social welfare shrinks …
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We investigate mergers in markets where quality differences between products are central and firms may reposition their product lines by adding or removing products of different qualities following a merger. Such mergers are materially different from those studied in the existing literature....
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