Intertemporal Price Discrimination with Multiple Products

We study the multiproduct monopoly profit maximisation problem for a seller who can commit to a dynamic pricing strategy. We show that if consumers' valuations are not strongly-ordered then optimality for the seller can require intertemporal price discrimination which can be implemented by a marketing strategy known as "dynamic pricing on the cross-sell." For general valuations weestablish a sufficient condition for such dynamic pricing to be more profitable than mixed bundling. So we show that the Stokey (1979) no-discrimination-across-time result does not extend to multiple good sellers when consumers' valuations are drawn from standard distributions such as the tilted uniform, the shifted uniform, the exponential, or the normal