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C.-Philipp Heller, Heiner Lindenlaub and Frank P Maier-Rigaud
''Exclusionary bundle discounts: A simple model with two applications''
( 2020, Vol. 40 No.1 )
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.
Keywords: exclusionary pricing, bundling, mergers
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
L4 - Antitrust Issues and Policies: General
Manuscript Received : Jul 21 2019 Manuscript Accepted : Feb 05 2020

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