Mixed Bundling in Two-Sided Markets in the Presence of Installed Base Effects

@article{Chao2013MixedBI,
  title={Mixed Bundling in Two-Sided Markets in the Presence of Installed Base Effects},
  author={Yong Chao and Timothy P. Derdenger},
  journal={Management Science},
  year={2013},
  volume={59},
  pages={1904-1926}
}
We analyze mixed bundling in two-sided markets where installed base e ects are present and nd that the pricing structure deviates from traditional bundling as well as the standard twosided markets literature|{we determine prices on both sides fall with bundling. Mixed bundling acts as a price discrimination tool segmenting the market more e ciently. Consequently, as a by-product of this price discrimination, the two sides are better coordinated and social welfare is enhanced. We show… CONTINUE READING
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