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http://hdl.handle.net/2445/112719
Title: | On the private and social desirability of mixed bundling in complementary markets with cost savings |
Author: | Halmenschlager, Christine Mantovani, Andrea |
Keywords: | Telecomunicació Empreses multinacionals Comunicacions digitals Telecommunication International business enterprises Digital communications |
Issue Date: | 2016 |
Publisher: | Institut d’Economia de Barcelona |
Series/Report no: | [WP E-IEB16/06] |
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. |
Note: | Reproducció del document publicat a: http://www.ieb.ub.edu/2012022157/ieb/ultimes-publicacions |
It is part of: | IEB Working Paper 2016/06 |
URI: | http://hdl.handle.net/2445/112719 |
Appears in Collections: | IEB (Institut d’Economia de Barcelona) – Working Papers |
Files in This Item:
File | Description | Size | Format | |
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IEB16-06_Halmenschlager.pdf | 1.51 MB | Adobe PDF | View/Open |
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