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Evaluating Bundled Discounts - CORI

Evaluating Bundled Discounts Thomas A. Lambert ABSTRACT: Bundled Discounts Discounts conditioned upon purchasing products from multiple product markets present a bit of a dilemma for antitrust scholars: one the one hand, they result in lower prices and therefore provide immediate benefits to consumers; on the other hand, even above- cost ( , non-predatory) Bundled Discounts may cause long-run consumer harm by foreclosing competitors that are as efficient as the discounter but do not sell as broad a line of products. Courts therefore need an evaluative approach that would identify and condemn all, but only, those Bundled Discounts likely to cause long-term consumer harm by driving out efficient rivals.

EVALUATING BUNDLED DISCOUNTS ... discounted prices 3M offered were above its costs and therefore were not predatory.6 Not surprisingly, LePage’s caused quite an uproar in the business community.7 ... discounts raise. Part II then considers and critiques the five approaches

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