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Using a unique dataset of the Netflix video on demand library, this article measures the characteristics of information goods important when employing a strategic bundling strategy. By matching the titles entering and exiting the library to their relevant properties, I use a characteristic...
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We discuss the effect of pricing strategies by two firms on the total firm revenue, consumer and total welfare using simulation and numerical analysis. We consider pricing decisions for mixed bundling and where each firm offers two closely related products as well as a bundle. Bundling is a key...
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We model the potential for a company bundling high search cost information goods to obtain an advantage over conventional individual sales. Using the streaming video industry as an example, we model the search costs associated with films. We find that bundling services can increase a user's...
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producer is able to recover investment costs through bundle sales. This paper analyzes the profitability and welfare properties …
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Dramatic increases in the capabilities and decreases in the costs of computers and communication networks have fomented revolutionary thoughts in the scholarly publishing community. In one dimension, traditional pricing schemes and product packages are being modified or replaced. We designed and...
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