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Reference: Mark Armstrong, (2011). Bundling Revisited: Substitute Products and Inter-Firm Discounts. Department of Economics (University of Oxford).Citable link to this page:

 

Bundling Revisited: Substitute Products and Inter-Firm Discounts. Series: Discussion paper series

Abstract: This paper extends the standard model of bundling to allow products to be sub-stitutes and for products to be supplied by separate sellers. Whether integrated orseparate, …rms have an incentive to introduce a bundling discount when demand forthe bundle is elastic relative to demand for stand-alone products. When productsare partial substitutes, this typically gives an integrated …rm a greater incentive too¤er a bundle discount (relative to the standard model with additive preferences),while product substitutability is often the sole reason why separate sellers wish too¤er inter-…firm discounts. When separate sellers negotiate their inter-…firm discount,they can use the discount to relax competition.

Bibliographic Details

Issue Date: 2011-10Identifiers

Urn: uuid:ef5574e5-1efd-478d-b6cd-3490eb0fd02a Item Description

Type: info:eu-repo/semantics/workingPaper;

Language: en

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Author: Mark Armstrong - - - - Bibliographic Details Issue Date: 2011-10 - Identifiers Urn: uuid:ef5574e5-1efd-478d-b6cd-3490eb0fd02a - -

Source: https://ora.ox.ac.uk/objects/uuid:ef5574e5-1efd-478d-b6cd-3490eb0fd02a



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