Geng, Xianjun; Stinchcombe, Maxwell B.; Whinston, Andrew B. - In: Management Science 51 (2005) 4, pp. 662-667
Consumers' average value for information goods, websites, weather forecasts, music, and news declines with the number consumed. This paper provides simple guidelines to optimal bundling marketing strategies in this case. If consumers' values do not decrease too quickly, we show that bundling is...