On the private and social desirability of mixed bundling in complementary markets with cost savings

Halmenschlager, Christine ; Mantovani, Andrea (2015) On the private and social desirability of mixed bundling in complementary markets with cost savings. Bologna: Dipartimento di Scienze economiche DSE, DOI 10.6092/unibo/amsacta/4403. In: Quaderni - Working Paper DSE (1038). ISSN 2282-6483.
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Abstract

The aim of this paper is to study both the private and the social desirability of a mixed bundling strategy that generates a cost savings effect. We confirm that mixed bundling is the dominant strategy for multiproduct firms, although it may give rise to a prisoner’s dilemma. Moreover, we show that mixed bundling may maximise social welfare, provided that cost savings are sufficiently high. Finally, we highlight the parametric regions where the social and the private interests coincide, and those where they do not. The recent evolution of broadband telecommunications services provides an ideal framework to apply our theoretical predictions.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Halmenschlager, Christine
Mantovani, Andrea
Keywords
Mixed bundling, strategic interaction, broadband market, cost savings
Subjects
ISSN
2282-6483
DOI
Deposit date
11 Nov 2015 09:43
Last modified
07 Jun 2017 08:03
URI

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