What is the difference between product versioning and product bundling? Which of these two business practices have antitrust authorities been more likely to regard to be the form of price discrimination called tie-in sales? Why?
What will be an ideal response?
Versioning entails selling a product in slightly altered forms to different groups of consumers. From one standpoint, versioning might be seen as a means of engaging in price discrimination by charging different prices to different consumers for very nearly the same product. From another point of view, however, versioning can be regarded as imperfectly substitutable products sold in separate markets, in which case there is no price discrimination associated with this business practice. Product bundling entails offering two or more products for sale as a set. If a bundling arrangement limits a consumer's ability to buy one product to the simultaneous purchase of another product, then this is a form of tie-in sale that antitrust authorities sometimes regard as a means of practicing price discrimination.
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