Mixed Bundling and Imperfect Competition
Daniel R. Vincent ,
Working paper
MBAIC.pdf316.1 KB

A model of two-product, Hotelling duopolists is examined in which  firms can engage in mixed bundling. Even though products are independent in consumption, bundled pricing induces complementarity across different products.  The most efficient outcome, symmetric independent goods pricing, is no longer an equilibrium when mixed bundling is feasible.

Links to Researchers