In the article “Exclusionary Bundle Discounts: A Simple Model with Two Applications,” published in Volume 40, Issue 1, of Economics Bulletin, Senior Consultant Heiner Lindenlaub, and co-authors Philipp Heller and Frank Maier-Rigaud develop a simple theoretical model to test for exclusionary bundle discounts.

The authors apply their test to the Vodafone/Liberty Global merger in Germany and find bundle discounts in the German broadband Internet access market consistent with exclusion. They also use the model to simulate the merger’s price effects.