IDEAS home Printed from https://ideas.repec.org/p/mop/lasrwp/2008.23.html
   My bibliography  Save this paper

Mixed Bundling and Mergers

Author

Listed:
  • Laurent Granier
  • Marion Podesta

Abstract

Does bundling trigger mergers? We observe mergers between firms belonging to independent industries. These mergers enable firms to bundle. Indeed, many telephone firms, internet access providers or cable TV operators merge. Thus, the merged firms can provide bundles. Therefore, the question is the following: can bundling strategies allowed by a two-market merger create an incentive to merge? We consider two horizontally differentiated markets. The correlation of reservation prices is the sole link between these two markets. In this framework, we show that bundling strategies create incentives to form multi-markets firms. Merger decisions are endogenous in our model.

Suggested Citation

  • Laurent Granier & Marion Podesta, 2008. "Mixed Bundling and Mergers," Cahiers du LASER (LASER Working Papers) 2008.23, LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1.
    • Handle: RePEc:mop:lasrwp:2008.23
    as

    Download full text from publisher

    File URL: http://www.laser.univ-montp1.fr/Cahiers/cahier230108.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Product Bundling; Endogenous Mergers; Multi-Market Contacts;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mop:lasrwp:2008.23. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean-Christophe POUDOU (email available below). General contact details of provider: https://edirc.repec.org/data/lsmplfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.