[{"language":[{"iso":"eng"}],"keyword":["Retail bundling","upstream market power","double marginalization","product differentiation"],"department":[{"_id":"280"},{"_id":"475"}],"user_id":"37339","_id":"44091","project":[{"_id":"1","name":"SFB 901: SFB 901"},{"name":"SFB 901 - A: SFB 901 - Project Area A","_id":"2"},{"name":"SFB 901 - A3: SFB 901 - Subproject A3","_id":"7"}],"status":"public","abstract":[{"lang":"eng","text":"We study the effects of product differentiation on the bundling incentives of a two-product retailer. Two monopolistic manufacturers each produce a differentiated good. One sells it to both retailers, while the other only supplies a single retailer. Retailers compete in prices. Retail bundling is profitable when the goods are close substitutes. Only then is competition so intense that the retailer uses bundling to relax competition both within and across product markets, despite an aggravation of the double marginalization problem. Our asymmetric market structure arises endogenously for the case of close substitutes. In this case, bundling reduces social welfare."}],"type":"report","title":"The Impact of Product Differentiation on Retail Bundling in a Vertical Market","author":[{"last_name":"Endres-Fröhlich","full_name":"Endres-Fröhlich, Angelika Elfriede","id":"48794","first_name":"Angelika Elfriede"},{"first_name":"Burkhard","last_name":"Hehenkamp","full_name":"Hehenkamp, Burkhard","id":"37339"},{"first_name":"Joachim","last_name":"Heinzel","full_name":"Heinzel, Joachim"}],"date_created":"2023-04-20T16:21:28Z","date_updated":"2023-04-20T17:15:48Z","page":"43","jel":["D43","L13","L42"],"citation":{"chicago":"Endres-Fröhlich, Angelika Elfriede, Burkhard Hehenkamp, and Joachim Heinzel. <i>The Impact of Product Differentiation on Retail Bundling in a Vertical Market</i>, n.d.","ieee":"A. E. Endres-Fröhlich, B. Hehenkamp, and J. Heinzel, <i>The Impact of Product Differentiation on Retail Bundling in a Vertical Market</i>. .","ama":"Endres-Fröhlich AE, Hehenkamp B, Heinzel J. <i>The Impact of Product Differentiation on Retail Bundling in a Vertical Market</i>.","bibtex":"@book{Endres-Fröhlich_Hehenkamp_Heinzel, title={The Impact of Product Differentiation on Retail Bundling in a Vertical Market}, author={Endres-Fröhlich, Angelika Elfriede and Hehenkamp, Burkhard and Heinzel, Joachim} }","short":"A.E. Endres-Fröhlich, B. Hehenkamp, J. Heinzel, The Impact of Product Differentiation on Retail Bundling in a Vertical Market, n.d.","mla":"Endres-Fröhlich, Angelika Elfriede, et al. <i>The Impact of Product Differentiation on Retail Bundling in a Vertical Market</i>.","apa":"Endres-Fröhlich, A. E., Hehenkamp, B., &#38; Heinzel, J. (n.d.). <i>The Impact of Product Differentiation on Retail Bundling in a Vertical Market</i>."},"year":"2022","publication_status":"draft"},{"title":"Bundling in a Distribution Channel with Retail Competition","author":[{"first_name":"Joachim Maria Josef","last_name":"Heinzel","full_name":"Heinzel, Joachim Maria Josef","id":"53445"}],"date_created":"2019-06-28T08:42:49Z","date_updated":"2022-01-06T06:50:37Z","publisher":"CIE Working Paper Series","citation":{"ieee":"J. M. J. Heinzel, <i>Bundling in a Distribution Channel with Retail Competition</i>. Paderborn University: CIE Working Paper Series, 2019.","chicago":"Heinzel, Joachim Maria Josef. <i>Bundling in a Distribution Channel with Retail Competition</i>. Paderborn University: CIE Working Paper Series, 2019.","ama":"Heinzel JMJ. <i>Bundling in a Distribution Channel with Retail Competition</i>. Paderborn University: CIE Working Paper Series; 2019.","mla":"Heinzel, Joachim Maria Josef. <i>Bundling in a Distribution Channel with Retail Competition</i>. CIE Working Paper Series, 2019.","short":"J.M.J. Heinzel, Bundling in a Distribution Channel with Retail Competition, CIE Working Paper Series, Paderborn University, 2019.","bibtex":"@book{Heinzel_2019, place={Paderborn University}, title={Bundling in a Distribution Channel with Retail Competition}, publisher={CIE Working Paper Series}, author={Heinzel, Joachim Maria Josef}, year={2019} }","apa":"Heinzel, J. M. J. (2019). <i>Bundling in a Distribution Channel with Retail Competition</i>. Paderborn University: CIE Working Paper Series."},"place":"Paderborn University","year":"2019","has_accepted_license":"1","file_date_updated":"2019-06-28T08:44:52Z","language":[{"iso":"eng"}],"ddc":["330"],"keyword":["retail bundling","leverage theory","double marginalization"],"user_id":"53445","department":[{"_id":"280"},{"_id":"475"}],"project":[{"name":"SFB 901","_id":"1"},{"name":"SFB 901 - Project Area A","_id":"2"},{"name":"SFB 901 - Subproject A3","_id":"7"}],"_id":"10332","file":[{"date_updated":"2019-06-28T08:44:52Z","date_created":"2019-06-28T08:44:52Z","creator":"jheinzel","file_size":375054,"file_id":"10333","access_level":"closed","file_name":"WP120.pdf","content_type":"application/pdf","success":1,"relation":"main_file"}],"status":"public","abstract":[{"lang":"eng","text":"We analyze the incentives for retail bundling and the welfare effects of retail bundling in a decentralized distribution channel with two retailers and two monopolistic manufacturers. One manufacturer exclusively sells his good to one retailer, whereas the other manufacturer sells his good to both retailers. Thus, one retailer is a monopolist for one product but competes with the other retailer in the second product market. The two-product retailer has the option to bundle his goods or to sell them separately. We find that bundling aggravates the double marginalization problem for the bundling retailer. Nevertheless, when the retailers compete in prices, bundling can be more profitable than separate selling for the retailer as bundling softens the retail competition. The ultimate outcome depends on the manufacturers’ marginal costs. Given retail quantity competition, however, bundling is in no case the retailer’s best strategy. Furthermore, we show that profitable bundling reduces consumer and producer surplus in the equilibrium."}],"type":"report"}]