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Título:
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Endogenous Mergers of Complements with Mixed Bundling
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Autor/a:
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Flores-Fillol, Ricardo; Moner Colonques, Rafael
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Otros autores:
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Universitat Rovira i Virgili. Departament d'Economia |
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Resum:
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This paper studies endogenous mergers of complements with mixed bundling, by allowing both for joint and separate consumption. After merger, partner fi
rms decrease the
price of the bundled system. Besides, when markets for individual components are suffi
ciently important, partner
firms raise prices of stand-alone products, exploiting their
monopoly power in local markets and making substitute 'mix-and-match' composite
products less attractive to consumers. Even though these effects favor the pro
fitability
of mergers, merging is not always an equilibrium outcome. The reason is that outsiders
respond by cutting their prices to retain their market share, and mergers can be unprofitable when competition is intense. From a welfare analysis, we observe that the number
of mergers observed in equilibrium may be either excessive (when markets for individual
components are important) or suboptimal (when markets for individual components are
less important).
Keywords: complements; merger; mixed bundling; separate consumption
JEL classi
fication: L13; L41; D43 |
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Fecha de creación:
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2010 |
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Materias (CDU):
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334 - Formes d'organització i cooperació en l'economia |
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Materia(s):
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Oligopolis
Monopolis
Empreses -- Fusió
Consum (Economia)
Preus |
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Derechos:
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Aquest document està subjecte a una llicència d'ús de Creative Commons, amb la qual es permet copiar, distribuir i comunicar públicament l'obra sempre que se'n citin l'autor original, la universitat i el departament i no se'n faci cap ús comercial ni obra derivada, tal com queda estipulat en la llicència d'ús (http://creativecommons.org/licenses/by-nc-nd/2.5/es/) |
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Tipo de documento:
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Documento de trabajo |
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ISSN:
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1988 - 0812
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Collection:
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Documents de treball del Departament d'Economia;2010-16
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Compartir:
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