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Bundling and Tying
Nicholas Economides
(Stern School of Business, New York University. 44 West 4th Street, New York, NY 10012)
Nicholas S. Economides
We discuss strategic ways that sellers can use tying and bundling with requirement conditions to extract consumer surplus. We analyze different types of tying and bundling creating (i) intra-product price discrimination; (ii) intra-consumer price discrimination; and (iii) inter-product price discrimination, and assess the antitrust liability that these practices may entail. We also discuss the impact on consumers and competition, as well as potential antitrust liability of bundling "incontestable" and "contestable" demand for the same good.
Nicholas Economides, 2014. "Bundling and Tying," Working Papers 14-22, NET Institute.
Handle: RePEc:net:wpaper:1422
File URL: http://www.stern.nyu.edu/networks/Economides_Bundling_and_Tying.pdf
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tying; ties; bundling; bundled rebates; loyalty discounts; loyalty requirement rebates; single monopoly surplus; monopolization; market power; foreclosure; antitrust;
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
NEP-IND-2014-11-01 (Industrial Organization)
NEP-MKT-2014-11-01 (Marketing)
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For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nicholas Economides (email available below). General contact details of provider: http://www.NETinst.org/ .