Alexandre de Cornière
Toulouse School of Economics
will give a presentation on
Anticompetitive Bundling when Buyers Compete
Abstract:
We study the profitability of bundling by an upstream firm who licenses technologies to downstream competitors, and who faces competition for one of its technologies. In an otherwise standard “Chicago-style” model, we show that the existence of downstream competition can make inefficient bundling profitable. Forcing downstream firms to use a less efficient technology can soften competition, thus allowing the upstream firm to extract more profit through the licensing of its monopolized technology.
With Greg Taylor.
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