@techreport{NBERw16318, title = "Analyzing the Welfare Impacts of Full-line Forcing Contracts", author = "Justin Ho and Katherine Ho and Julie Holland Mortimer", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "16318", year = "2010", month = "August", URL = "http://www.nber.org/papers/w16318", abstract = {Theoretical investigations have examined both anti-competitive and efficiency-inducing rationales for vertical bundling, making empirical evidence important to understanding its welfare implications. We use an extensive dataset on full-line forcing contracts between movie distributors and video retailers to empirically measure the impact of vertical bundling on welfare. We identify and measure three primary effects of fullline forcing contracts: market coverage, leverage, and efficiency. We find that bundling increases market coverage and efficiency, but has little impact on one distributor gaining leverage over another. As a result, we estimate that full-line forcing contracts increased consumer and producer surplus in this application.}, }