Economics Oligopoly Questions
The price bundling model in oligopoly refers to a pricing strategy where multiple products or services are offered together as a package at a discounted price. This strategy is commonly used by firms in an oligopolistic market structure to increase their market share, differentiate their offerings, and potentially reduce competition. By bundling products together, firms can attract more customers, increase sales volume, and potentially achieve economies of scale. Additionally, price bundling can also help firms to create barriers to entry for potential competitors, as it becomes more difficult for new entrants to replicate the bundled offerings.