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23 p, 195.6 KB Endogenous integration and welfare in complementary goods markets / Flores-Fillol, Ricardo ; Moner Colonques, Rafael ; Universitat Autònoma de Barcelona. Unitat de Fonaments de l'Anàlisi Econòmica ; Universitat Autònoma de Barcelona. Institut d'Anàlisi Econòmica
This paper analyzes the strategic decision to integrate by firms that produce complementary products. Integration entails bundling pricing. We find out that integration is privately profitable for a high enough degree of product differentiation, that profits of the non-integrated firms decrease, and that consumer surplus need not necessarily increase when firms integrate despite the fact that prices diminish. [...]
2006 (Working papers ; 658.06)  

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