Journal of Economic Literature (JEL) Code(s)
D43, L13, L15
This paper proposes a framework for studying competitive mixed bundling with an arbitrary number of ﬁrms. We examine both a ﬁrm’s incentive to introduce mixed bundling and equilibrium tariﬀs when all ﬁrms adopt the mixed-bundling strategy. In the duopoly case, relative to separate sales, mixed bundling has ambiguous impacts on prices, proﬁt and consumer surplus; with many ﬁrms, however, mixed bundling typically lowers all prices, harms ﬁrms and beneﬁts consumers.
Zhou, Jidong, "Mixed Bundling in Oligopoly Markets" (2021). Cowles Foundation Discussion Papers. 2594.