Price bundling

Hermann Simon and Martin Fassnacht

European Management Journal, 1993, vol. 11, issue 4, 403-411

Abstract: Price bundling is a potentially powerful method to exploit profit potentials and to maximize profits in any multi-product company. In this presentation of the technique, Hermann Simon and Martin Fassnacht explain that the heterogeneity of demand is reduced and customers' willingness to pay is used to the company's advantage. Profit increases are likely to be in the range of 10 to 30%. Antitrust aspects should be observed, particularly if the company is in a dominant market position. Competitive dynamics may make unbundling necessary.

Date: 1993
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/0263237393900042
Full text for ScienceDirect subscribers only

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: https://EconPapers.repec.org/RePEc:eee:eurman:v:11:y:1993:i:4:p:403-411

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/115/bibliographic
http://www.elsevier. ... me/115/bibliographic

Access Statistics for this article

European Management Journal is currently edited by Michael Haenlein

More articles in European Management Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().