Pricing a Package of Services
Felix Ketelaar and
Dezsoe Szalay ()
No 10313, CEPR Discussion Papers from C.E.P.R. Discussion Papers
We study a tractable two-dimensional model of price discrimination. Consumers combine a rigid with a more flexible choice, such as choosing the location of a house and its quality or size. We show that the optimal pricing scheme involves no bundling if consumer types are affiliated. Conversely, if consumer types are negatively affiliated over some portion of types then some bundling occurs.
Keywords: Bundling; Monopoly; Multidimensional screening; Price discrimination (search for similar items in EconPapers)
JEL-codes: D42 D82 D86 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-ind, nep-mic and nep-mkt
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