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| C.-Philipp Heller, Heiner Lindenlaub and Frank P Maier-Rigaud |
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| ''Exclusionary bundle discounts: A simple model with two applications'' |
| ( 2020, Vol. 40 No.1 ) |
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| We develop a simple theoretical model of exclusionary bundle discounts. Based on the model, we develop a screening test for exclusionary bundle discounts. This test only requires knowledge of prices and an estimate of the coverage of the bundle discount. We apply this test to the Vodafone/Liberty Global merger in Germany and find bundle discounts in the German broadband Internet access market consistent with exclusion. We finally use the model to simulate the merger's price effects. |
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| Keywords: exclusionary pricing, bundling, mergers |
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
L4 - Antitrust Issues and Policies: General |
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| Manuscript Received : Jul 21 2019 | | Manuscript Accepted : Feb 05 2020 |
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