Antitrust laws are designed to benefit consumers. As a result, antitrust enforcement should encourage discounting to the extent that those discounts benefit consumers. But bundled discounting by a firm with monopoly power in one market can, under certain conditions, allow the firm to extend its monopoly to a second market. At the same time, bundled discounting is pervasive even in markets without monopoly power, and it is generally recognized that bundled discounting can have procompetitive effects. As a result, economists and courts have struggled to adopt a rule that will create the incentive to offer procompetitive bundled discounts without undermining the ability of courts and plaintiffs to identify bundled discounting with the potential to harm competition.
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