The Strategic Effect of Bundling: A New Perspective

Abstract

This paper investigates the strategic effect of bundling when a multi-product firm producing two complements faces competition in both markets. I consider a demand structure where both Cournot and Bertrand competition can be evaluated. Bundling is completely ineffective when firms compete in quantities. On the contrary, under Bertrand competition, selling the two goods in a package is profitable when the goods produced by the rivals are perceived as close substitutes to those produced by the multi-product firm. Bundling drives prices up, and not only consumer surplus, but also social welfare shrinks, thus calling for the intervention of the antitrust agency.

What price planning? Reimagining planning as “market maker”

“…By associating control of liquidity with a group dynamic there are important behavioural cues given to the engaged developers who are simultaneously collaborating with the development corporation on the wider vision for the area as a whole and, through a process of competitive tendering in which design criteria are strongly weighted, competing with each other for the right to develop a single site (see for fuller details, Lord et al, 2015). This approach to redevelopment echoes aspects of other market making activities where assets are bundled and/or repackaged (Mantovani, 2013) By the turn of the 2000s the Communauté Urbaine had engineered a consensus across the larger communes that comprise the Lille city-region founded on two principles. Firstly, the economic success of the city region as a whole was established as depending on policy markers' ability to establish Lille as an attractive location for internationally footloose service and knowledge-based industries> Secondly, for such a strategy to work, the social and economic prospects of the less affluent communes, most notably Roubaix and Tourcoing, had to be addressed .…”

A bundling sales strategy for a two-stage supply chain based on the complementarity elasticity of imperfect complementary products

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Non-Horizontal Mergers with Investments into Compatibility

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