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Industrial Organisation 2022

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Pregunta:

What is bundlings, and why is it anti-competitive?

Autor: Hjalmer Pedersen



Respuesta:

Bundling is when products, goods or services can only be purchased together, even though it would be natural or usual to trade them separately. 1. Product type determines whether the separate sale is natural 2. Trade practices determine whether separate sales is usual Bundling in practice: • Sales bundling: When the selling company that bundles its products. • Buying bundling: When the buyer will only purchase a single package. • Direct bundling (pure bundling), bundling in LWG's terminology: The purchase of a product conditional on the purchase of second and vice versa - a total package. • Tying: asymmetric variant of direct bundling: The purchase of a product conditional on the purchase of another; but not vice versa. • Indirect bundling: When the bundled give a discount is so high that no / or only choose to purchase separately. Bundling is a violation to Competition Act, §11 and § 6


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