To Bundle or Not to Bundle

Commodity bundling is studied in an environment where the dispersion of valuations unambiguously decreases when two or more goods are sold as a bundle only. Bundling is more likely to dominate separately selling the goods if marginal costs are low relative to the average valuation, or if the distribution of valuations is very peaked around the mean.

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Year of publication:	2003-10
Authors:	Fang, Hanming ; Norman, Peter
Institutions:	Cowles Foundation for Research in Economics, Yale University
Subject:	Monopolistic pricing \| Bundling \| Peakedness

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Extent:	application/pdf
Series:	Cowles Foundation Discussion Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Published in Rand Journal of Economics (Winter 2006), 37(4): 946-963 The price is None Number 1440 12 pages
Classification:	L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; L12 - Monopoly; Monopolization Strategies
Source:	RePEc - Research Papers in Economics

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