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Persistent link: https://www.econbiz.de/10004947775
also coincides with the emergence of new competitive strategies such as large-scale bundling. In this paper, we show that … bundling can create “economies of aggregation” for information goods if their marginal costs are very low, even in the absence … of network externalities or economies of scale or scope. We extend the Bakos-Brynjolfsson bundling model (1999) to …
Persistent link: https://www.econbiz.de/10008789666
The current overview of bundling theory is combined with author's experiences of its practical application into several … bank as well. Application of bundling strategies in retail banking reduces a bank's variable cost for selling, secures both …
Persistent link: https://www.econbiz.de/10005134983
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perhaps the most accessible lever to manage profitability. Even minor fluctuations in pricing can have a significant impact on … both revenues and profitability. As such, lack of careful planning in pricing is a wasted opportunity. With this as a … backdrop, we make a case for precision in pricing to enhance profitability. Since consumers vary in their preferences …
Persistent link: https://www.econbiz.de/10010574722
effects of bundling in the office productivity software market. We examine the competitive effects of bundling in a simulated …Our paper examines the importance of office suites for the evolution of the PC office software market in the 1990s. We … the suite when it is introduced, and reap significant benefits. The simulations show that the introduction of Microsoft …
Persistent link: https://www.econbiz.de/10011083678
We study the strategy of bundling a large number of information goods, such as those increasingly available on the … Internet, and selling them for a fixed price. We analyze the optimal bundling strategies for a multiproduct monopolist, and we … find that bundling very large numbers of unrelated information goods can be surprisingly profitable. The reason is that the …
Persistent link: https://www.econbiz.de/10009209326
Bundling, which is the practice of selling two or more products or services in a package, is a pervasive marketing … bundling situations in which exit of a competitor is not a concern. In this paper, we address this issue by identifying … conditions under which strategic competitors may or may not resort to bundling when competitor exit considerations are absent. We …
Persistent link: https://www.econbiz.de/10009218355
In this paper, we analyse a service provider’s mixed bundling problem for services such as sporting events or holiday …
Persistent link: https://www.econbiz.de/10010869221
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