We empirically analyze the welfare effects of cross-firm bundling in the pharmaceutical industry. Physicians often treat patients with "cocktail" regimens that combine two or more drugs. Firms cannot price discriminate because each drug is produced by a different firm and a physician creates the bundle in her office from the component drugs. We show that a less competitive equilibrium arises wi...

I. A. Firmo,1,2,* S. Lederer,3,* C. Lupien,4 A. P. Mackenzie,5,6 J. C. Davis,1,2,5,7 and S. A. Kivelson3 1Laboratory of Solid State Physics, Department of Physics, Cornell University, Ithaca, New York 14853, USA 2CMPMS Department, Brookhaven National Laboratory, Upton, New York 11973, USA 3Department of Physics, Stanford University, Stanford, California 96305, USA 4Département de Physique & RQM...

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Elizabeth F. Sutton, Heinrich E. Lob, Jiunn Song, YunWei Xia, Scott Butler, Chin-Chi Liu, Leanne M. Redman, and Jenny L. Sones Pennington Biomedical Research Center, Louisiana State University, Baton Rouge, Louisiana; Biomedical Sciences, College of Veterinary Medicine, Cornell University, Ithaca, New York; and Veterinary Clinical Sciences, School of Veterinary Medicine, Louisiana State Univers...

Department of Psychology, University of British Columbia, Vancouver, British Columbia. Institute of Cognitive Science, University of Colorado Boulder, Boulder, Colorado. Laboratory of Brain and Cognition, Human Neuroscience Institute, Cornell University, Ithaca, New York. Department of Philosophy, University of Toronto, Toronto, Ontario. Centre for Brain Health, University of British Columbia, ...