Teaching Pure & Mixed Bundling using a Spreadsheet

2004 ◽  
Author(s):  
Stacey Brook
Keyword(s):  
2011 ◽  
Vol 101 (1) ◽  
pp. 263-303 ◽  
Author(s):  
Chenghuan Sean Chu ◽  
Phillip Leslie ◽  
Alan Sorensen

Multiproduct firms can set separate prices for all possible bundled combinations of its products (“mixed bundling”). However, this is impractical for firms with more than a few products, because the number of prices increases exponentially with the number of products. We find that simple pricing strategies are often nearly optimal. Specifically, we show that bundle-size pricing—setting prices that depend only on the size of bundle purchased—tends to be more profitable than offering the individual products priced separately and tends to closely approximate the profits from mixed bundling. (JEL D24, D42, L11, L13, L25).


2020 ◽  
Vol 9 (1) ◽  
pp. 31
Author(s):  
Carmen D. Álvarez-Albelo

This paper studies optimal pricing when a monopolist firm produces two complementary goods and may undertake a bundling strategy. To do so, a modified version of Yan and Bandyopadhyay’s (2011) framework is used, in which the efficacy of the bundling strategy depends positively on the degree of complementarity of goods. Two main results are obtained. First, mixed bundling turns out to be the optimal strategy for the firm, since it yields higher profits than pure unbundling and pure bundling. Second, sales and profits from the bundling (unbundling) strategy increase (decrease) as the products become more complementary, which entails an empirically sensible behavior.


2017 ◽  
Vol 113 ◽  
pp. 369-381 ◽  
Author(s):  
Xiaoxiao Luo ◽  
Minqiang Li ◽  
Haiyang Feng ◽  
Nan Feng

2013 ◽  
Vol 59 (9) ◽  
pp. 2170-2185 ◽  
Author(s):  
Hemant K. Bhargava
Keyword(s):  

Sign in / Sign up

Export Citation Format

Share Document