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Dominance and Competitive Bundling

By Sjaak Hurkens, Doh-Shin Jeon, and Domenico Menicucci

American Economic Journal: Microeconomics, August 2019

We study how bundling affects competition between two asymmetric multi-product firms. One firm dominates the other in that it produces better products more efficiently. For low (high) levels of dominance, bundling intensifies (relaxes) price competition a...