This paper studies a model of interpersonal bundling, in which a monopolist offers a good for sale under a regular … highest profit among all possible selling mechanisms. We explain how the profitability of interpersonal bundling with a …

group reaches some minimum size. This selling practice, which we term interpersonal bundling, has been popularized on the … Internet by companies such as Groupon. We explain why interpersonal bundling is a profitable strategy in the presence of demand … profitability are also discussed. We provide sufficient conditions for interpersonal bundling to dominate separate selling, and …