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A strategy used by firms in industries such as wireless is to bundle several services into a service plan and administer a nonlinear price with different marginal prices for different usage levels. Moreover firms offer a menu of service plans targeting different consumer segments to implement...
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Bundled discounts - discounts conditioned upon purchasing products from multiple product markets - present a dilemma for antitrust scholars: on the one hand, they result in lower prices and therefore provide immediate benefits to consumers; on the other hand, even above-cost (i.e.,...
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This paper studies product bundling in a distribution channel where a downstream retailer combines component goods produced by separate manufacturers acting independently. Past literature offers deep insights about bundling by a single firm whose unit costs are not impacted by choice of selling...
Persistent link: https://www.econbiz.de/10014039572
Regulatory bundling is the ability of administrative agencies to aggregate and disaggregate rules. Agencies, in other words, can bundle what would otherwise be multiple rules into just one. Conversely, they can split one rule into several. This observation parallels other recent work on how...
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Firms selling multiple products usually adopt bundle pricing in their marketing strategy for the purpose of extracting large consumer surplus. In this paper, we propose and analyze a bundling mechanism, referred to as component pricing with a bundle size discount (CPBSD), which sells bundles for...
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