Chapter 14-Monopoly bundling Formal analysis of monopoly bundling/Tying A More complicated Example o 2 products(produced at zero cost), 2 consumers e Valuations Product X Product Y Consumer 1 Consumer 2 430 034 Consumer 3 Separate sales: Px=py =3, Tt= 12; px=py =4, T=8 Pure Tying:p=4,兀=12;p′=6,兀=6 Mixed Tying: pMI=6& px=Py=4, T=14>12 e Wen Cao© Wen Cao 6 Formal analysis of monopoly bundling/Tying • A More Complicated Example • 2 products (produced at zero cost), 2 consumers • Valuations • Separate sales: pX  pY  ,  pX  pY  ,   • Pure Tying: pT   pT    • Mixed Tying: pMT  pX  pY    Chapter 14 - Monopoly bundling Product X Product Y Consumer 1 4 0 Consumer 2 3 3 Consumer 3 0 4