Alexandre de Cornière

Toulouse School of Economics

will give a presentation on

Anticompetitive Bundling when Buyers Compete

Abstract:

We study the profitability of bundling by an upstream firm who licenses technologies to downstream competitors, and who faces competition for one of its technologies. In an otherwise standard “Chicago-style” model, we show that the existence of downstream competition can make inefficient bundling profitable. Forcing downstream firms to use a less efficient technology can soften competition, thus allowing the upstream firm to extract more profit through the licensing of its monopolized technology.

With Greg Taylor.