Duopoly Bundling: Multi-product vs Single-product Firms

In this paper, I show numerically that a multi-product firm compet-ing against single-product firms will use linear pricing or pure bundling. Contrasted to the bundling strategy of monopolist, mixed bundling is dominated by either linear pricing or pure bundling. The complementar-ity or integrability between the products supplied by the multi-product firm cannot change this result. Even though the multi-product firm is better off from the enhanced product complementarity, mixed bundling will not be utilized as an optimal pricing strategy.