The 3M’s bundled rebate program disadvantage

by | Feb 23, 2019 | Analysis

Gary L. Roberts (2009). The Use of Bundled Rebates by a Dominant Firm: LePage’s v. 3M (2003)-. in Kwoka, J. and L. White (eds.), Antitrust Revolution: Economics. Competition and Policy, 5th edition, Oxford University Press. Case 10. pp. 276-.

  1. How does the 3M’s bundled rebate program disadvantage LePage?
  2. A multi-product firm sells toothpaste at $5 with cost at $3, and sells detergent at $4 with cost at $2. If retailer order 1000 units for each of them, it will enjoy 30% off discount. Suggest how this bundle rebate program foreclose a firm selling toothpaste with cost at $3.

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