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IEB16-06_Halmenschlager.pdf (1.47 MB)

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Working paper

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2016

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cc-by-nc-nd, (c) Halmenschlager et al., 2016
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/112719

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

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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.

Subject

Telecomunicació, Empreses multinacionals, Comunicacions digitals

Subject (English)

Telecommunication, International business enterprises, Digital communications

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IEB (Institut d’Economia de Barcelona) – Working Papers

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HALMENSCHLAGER, Christine and MANTOVANI, Andrea. On the private and social desirability of mixed bundling in complementary markets with cost savings. IEB Working Paper 2016/06. [consulted: 20 of August of 2026]. Available at: https://hdl.handle.net/2445/112719

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