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Essay text:
We do so to speak to the current public policy debate about bundling in cable markets. Motivated by consumer dis-satisfaction over ever-increasing cable prices, law- and policy-makers are looking at unbundling – or “a la carte” pricing – as a possible policy solution.1 Most cable television systems and the networks provided on them are strongly opposed to the idea, in part claiming that doing so would (possibly dramatically) reduce the number of (especially smaller) networks that can survive in an a la carte environment (Booz Allen Hamilton, 2004).2
Existing theory bears out both of these views...
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