Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159876
Authors: 
Halmenschlager, Christine
Mantovani, Andrea
Year of Publication: 
2015
Series/Report no.: 
Quaderni - Working Paper DSE 1038
Abstract: 
The aim of this paper is to study both the private and the social desirability of a mixed bundling strategy that generates a cost savings effect. We confirm that mixed bundling is the dominant strategy for multiproduct firms, although it may give rise to a prisoner's dilemma. Moreover, we show that mixed bundling may maximise social welfare, provided that cost savings are sufficiently high. Finally, we highlight the parametric regions where the social and the private interests coincide, and those where they do not. The recent evolution of broadband telecommunications services provides an ideal framework to apply our theoretical predictions.
JEL: 
D43
L13
L41
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

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