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Contribution to Book
Bundling and Tying
The Palgrave Encyclodepia of Strategic Management (2014)
  • Nicholas Economides, New York University
Abstract
We discuss strategic ways that sellers can use tying and bundling with requirement conditions to extract consumer surplus. We analyze different types of tying and bundling creating (i) intra-product price discrimination; (ii) intra-consumer price discrimination; and (iii) inter-product price discrimination, and assess the antitrust liability that these practices may entail. We also discuss the impact on consumers and competition, as well as potential antitrust liability of bundling “incontestable” and “contestable” demand for the same good.
Keywords
  • tying,
  • ties,
  • bundling,
  • bundled rebates,
  • loyalty discounts,
  • loyalty requirement rebates,
  • single monopoly surplus,
  • monopolization,
  • market power,
  • foreclosure,
  • antitrust
Publication Date
October 16, 2014
Citation Information
Nicholas Economides. 2014. "Bundling and Tying" NET Institute Working Paper #14-22