Economics Oligopoly Questions
Price bundling in oligopoly refers to the practice of selling multiple products or services together as a package at a single price. This strategy is commonly used by firms in an oligopolistic market structure to increase their market power and differentiate their offerings from competitors. By bundling products together, firms can potentially increase their sales volume, attract more customers, and create a perception of value for consumers. Additionally, price bundling can also help firms to reduce competition and maintain higher prices in the market.