Versioning Goods and Joint Purchase: Substitution and Complementarity Strategies

Francisco Martínez-Sánchez ()

No 07/06, ThE Papers from Department of Economic Theory and Economic History of the University of Granada.

Abstract: We analyze the monopolist’s decision about how to design different versions of a good, i.e. whether to make them substitutes or complements, when consumers can buy them simultaneously. In this context, we find that versioning goods as substitutes or complements may be optimal for the monopolist, and the final result depends on the degree of concavity and convexity of the cost function.

Keywords: Versioning Goods; Joint Purchase Option; Substitutes; Complementarity; Price Discrimination; Market Segmentation. (search for similar items in EconPapers)
JEL-codes: L10 L12 L15 (search for similar items in EconPapers)
Date: 2007-12-31
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Persistent link: http://EconPapers.repec.org/RePEc:gra:wpaper:07/06

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