Over on the PFF Blog, Ray Gifford responds to an economist’s concern over the potential anticompetitive effects of bundling. Read about The Sinister Practice of Bundling.
2 thoughts on “Anticompetitive Bundling?”
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Over on the PFF Blog, Ray Gifford responds to an economist’s concern over the potential anticompetitive effects of bundling. Read about The Sinister Practice of Bundling.
Comments are closed.
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I am *so* glad you posted this link! People get their knickers in a twist over bundling, not realizing that it’s pervasive and that it can generate huge benefits, product differentiation, etc.
The most egregious examples of “bundling” are those committed by government.
Imagine, for example, the potential of unbundling education from government, allowing purchasers (sic) of government services to purchase the bundled government education or to purchase their education from another source. In the current “bundled” case, non-government education must be purchased (if desired) in addition to the “bundled” variety.
Government taxation and regulation of commerce also result in the “bundling” of services which not only are useless to many customers of the regulated business, but may also be unavailable to those customers (transfer payments).
I believe I would be willing to purchase the components of Windows and Office separately if I could also purchase the services of the government separately.