Does bundling trigger mergers in energy industries? We observe mergers between …rms belonging to various energy markets, for instance between gas and electricity providers. These mergers enable …rms to bundle. We consider two horizontally di¤erentiated markets. In this framework, we show that bundling strategies in energy markets create incentives to form multi-market …rms in order to supply bienergy packages. Moreover, we …nd that this type of merger is detrimental to social welfare.JEL classi…cation: D43, L13, L22, L41.
International audienceThe air transport sector entered the European Trading Scheme in 2012 (for the intra-European flights). The regulation of CO2 emissions is costly for airlines and modifies the organization of their market. Our paper proposes an economic analysis in which the regulation but also CO2 emissions of airlines are modelled. We show that, in a perfect competition setting, the difference between passengers carried without regulation and when the regulation is put in place, is negative for the best-performing planes. However, for the less efficient aircraft, the implementation of the regulation entails a reduction of airlines activity, and therefore a low level of carbon emissions
We study the incentives to collude when firms use mixed bundling or independent pricing strategies for the sale of two components of a composite good. The main finding is that collusion is less sustainable under mixed bundling, because this increases the profitability of deviations from the collusive path. The result is robust to extensions with an endogenous choice of the mode of competition (with bundling or independent pricing) and to competition in quantities. These results offer a novel argument against a per se rule concerning bundling in antitrust policy.JEL classification: D4, L1
This letter addresses the second-degree price discrimination issue when a monopolized product is tied with environmental quality. The monopolist may degrade environmental quality too much when marginal valuations of environmental quality and the good itself are positively related across consumers.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.