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ISEG 2S | Bundling Incentives in Markets with Product Complementarities: The case of Triple-Play

04 Out das 14:00 às 14:01
Quelhas 6 | Floor 3 | Delta Room

 

Speaker




Pedro Pereira



Autoridade da Concorrência






Presentation




Bundling Incentives in Markets with Product Complementarities: The case of Triple-Play


Abstract

We analyze firms’ incentives to bundle and tie in the telecommunications industry. As a first step, we develop a discrete-choice demand model where firms sell products that may combine several services in bundles, and consumers choose assortments of different types of products available from various vendors. Our approach extends standard discrete-choice demand models of differentiated product to allow for both flexible substitution patterns and to map demand for each choice alternative onto the demand for each service or bundle that a firm may sell. We exploit these properties to examine bundling behavior when firms choose: (i) prices, and (ii) which products to sell. Using consumer-level data and survey data from the Portuguese telecommunications industry, we estimate our demand model and identify firm incentives to bundle and tie in this industry. We use the model to perform several policy related conterfactuals and evaluate their impact on prices and product provision.

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ORGANIZING TEAM

This seminars series is organized by
Joana Pais (ECO),
Raquel M. Gaspar (FIN/MG) and
Isabel Proença (QM).



MEETING THE SPEAKER

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