The Use of Full-Line Forcing Contracts in the Video Rental Industry

S-Tier
Journal: American Economic Review
Year: 2012
Volume: 102
Issue: 2
Pages: 686-719

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Bundling is at the forefront of many policy debates as new technologies allow firms to implement more complex bundling arrangements. Realistic analyses of bundling--particularly between suppliers and retailers--require detailed data on both supply arrangements and consumer demand. We analyze firms' use of bundling as a vertical restraint (known as full-line forcing) using extensive supply and demand data from the video rental industry. Our model captures key details of the market that determine firms' contractual choices, and sheds light on the implications of these decisions. The empirical approach provides a model for how to analyze bundling when detailed data are available. (JEL D86, L14, L81, L82)

Technical Details

RePEc Handle
repec:aea:aecrev:v:102:y:2012:i:2:p:686-719
Journal Field
General
Author Count
3
Added to Database
2026-01-26