The effect of bundling on the stable coalition in the composite goods market

초록

We investigate the effect of bundling on the stable coalition in the composite goods market. We show that, first, the grand coalition and the horizontal coalition are always stable. Second, when bundling is not allowed and consent is required from the firms inside the coalition for the new firm to join the coalition, with high degree of substitutability among the products, the vertical coalition is also stable. Third, bundling reduces the social welfare. Finally, depending upon the degree of substitutability among the products, allowing coalition may increase or decrease the social welfare.

키워드