Economics at your fingertips  

Closed‐Form Solutions to Bundling Problems

John Eckalbar ()

Journal of Economics & Management Strategy, 2010, vol. 19, issue 2, 513-544

Abstract: This paper investigates the case of a monopolist selling two distinct goods to a group of m traders who are characterized by their reservation prices, which are drawn independently from uniform distributions over the intervals [ 0, R1] and [ 0, R2]. Closed‐form solutions are derived for optimal prices, quantities, profits, and consumers' surplus under situations of separate sales, pure bundling, and mixed bundling. This allows a clear comparison of the price, output, and welfare effects of various forms of bundling. We further investigate situations of positive marginal cost, positive and negative correlation of reservation values, and substitutes and complements.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.blackwell ... ref=1058-6407&site=1

Access Statistics for this article

More articles in Journal of Economics & Management Strategy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2021-04-06
Handle: RePEc:bla:jemstr:v:19:y:2010:i:2:p:513-544