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Multiproduct firms can set separate prices for all possible bundled combinations of its products "mixed bundling"). However, this is impractical for firms with more than a few products, because the number of prices increases exponentially with the number of products. We find that simple pricing...
Persistent link: https://www.econbiz.de/10008835272
We examine pricing strategies for a multiproduct monopolist. We show that simple quantity discounting strategies are almost as profitable as fully optimal bundling. We investigate this in an empirical example, using data from a theater company
Persistent link: https://www.econbiz.de/10004977908
In principle, a multiproduct firm can set separate prices for all possible bundled combinations of its products (i.e., "mixed bundling"). However, this is impractical for firms with more than a few products, because the number of prices increases exponentially with the number of products. In...
Persistent link: https://www.econbiz.de/10005775173
Persistent link: https://www.econbiz.de/10007995296
In principle, a multiproduct firm can set separate prices for all possible bundled combinations of its products (i.e., "mixed bundling"). However, this is impractical for firms with more than a few products, because the number of prices increases exponentially with the number of products. In...
Persistent link: https://www.econbiz.de/10012464731
Persistent link: https://www.econbiz.de/10008884670