To Bundle or Not to Bundle

Hanming Fang () and Peter Norman ()

No 1440, Cowles Foundation Discussion Papers from Cowles Foundation, Yale University

Abstract: Commodity bundling is studied in an environment where the dispersion of valuations unambiguously decreases when two or more goods are sold as a bundle only. Bundling is more likely to dominate separately selling the goods if marginal costs are low relative to the average valuation, or if the distribution of valuations is very peaked around the mean.

Keywords: Monopolistic pricing; Bundling; Peakedness (search for similar items in EconPapers)
JEL-codes: L11 L12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ind
Date: 2003-10
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Related works:
Working Paper: To Bundle or Not to Bundle (2005)
Working Paper: To bundle or not to bundle (2003)
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