標題: Bundling strategy and product differentiation
作者: Chung, Hui-Ling
Lin, Yan-Shu
Hu, Jin-Li
經營管理研究所
Institute of Business and Management
關鍵字: Bundling strategy;Intra-brand differentiation;Inter-brand differentiation
公開日期: 1-Apr-2013
摘要: The existing literature shows that a decrease in the degree of substitutability increases a monopoly's incentive to bundle. This paper in addition takes into account competition in the second product market and then re-examines how intra-brand and inter-brand product differentiations affect the incentive to bundle. In order to formally examine the above conjectures, this research builds up a two-firm, two-product model in which product 1 (monopoly product) is produced only by the bundling firm and product 2 (competing product) is produced by both firms. The analysis shows that under both Bertrand and Cournot competitions the incentive to bundle does not necessarily increase with the degree of intra-brand differentiation, while it strictly decreases with the degree of inter-brand differentiation. Moreover, under Bertrand competition bundling always decreases consumer surplus, but may increase the competitor's profit and social surplus. Under Cournot competition bundling always reduces the opponent's profit and social welfare, but may increase consumer surplus.
URI: http://dx.doi.org/10.1007/s00712-012-0265-9
http://hdl.handle.net/11536/21810
ISSN: 0931-8658
DOI: 10.1007/s00712-012-0265-9
期刊: JOURNAL OF ECONOMICS
Volume: 108
Issue: 3
起始頁: 207
結束頁: 229
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