Some implications of pricing bundles

Xiao Huang, Mahesh Nagarajan and Greys Sošić

Naval Research Logistics (NRL), 2013, vol. 60, issue 3, 237-250

Abstract: In this article, we consider a problem in which two suppliers can sell their respective products both individually and together as a bundle, and study the impact of bundle pricing. Four pricing models (centralized, decentralized, coop–comp, and comp–coop) are analyzed with regard to the competition formats and sequences. As one would expect, the firms are always better off when pricing decisions are centralized. However, rather surprisingly, we find that firms may be worse off if the bundle prices are set in a cooperative way; we provide analytical characterization of those instances. Numerical studies show that these insights also hold for some nonlinear demand. © 2013 Wiley Periodicals, Inc. Naval Research Logistics, 2013

Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1002/nav.21531

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:wly:navres:v:60:y:2013:i:3:p:237-250

Access Statistics for this article

More articles in Naval Research Logistics (NRL) from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().