Publication: The discriminatory incentives to bundle in the cable television industry
The discriminatory incentives to bundle in the cable television industry
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Crawford, G. S. (2008). The discriminatory incentives to bundle in the cable television industry. Quantitative Marketing and Economics, 6(1), 41–78. https://doi.org/10.1007/s11129-007-9031-7
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An influential theoretical literature supports a discriminatory explanation for product bundling: it reduces consumer heterogeneity, extracting surplus in a manner similar to second-degree price discrimination. This paper tests this theory and quantifies its importance in the cable television industry. The results provide qualified support for the theory. While bundling of general-interest cable networks is estimated to have no discriminatory effect, bundling an average top-15 special-interest cable network significantly increases the
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Citations
Crawford, G. S. (2008). The discriminatory incentives to bundle in the cable television industry. Quantitative Marketing and Economics, 6(1), 41–78. https://doi.org/10.1007/s11129-007-9031-7
