Bundling is the sale of two or more products in combination as a package. In this paper we consider the bundling and pricing of a complex durable product with the after-sales repair and maintenance services. The product and service are two different, but related markets for this scenario. The problem of bundling and pricing are considered for two product market structures: monopoly and duopoly....

Why is issue-by-issue bargaining a common phenomenon, even though it disallows the beneficial trade-offs across issues that are possible when negotiating a global solution? We show that under asymmetric information, issue-by-issue bargaining has two attractive features. First, it avoids bundling a good deal on one issue with a bad deal on another issue, when the lack of gains to agreement on th...

Taxol has two obvious effects in cells. It stabilizes microtubules and it induces microtubule bundling. We have duplicated the microtubule-bundling effect of taxol in vitro and report preliminary characterization of this bundling using electron microscopy, sedimentation, and electrophoretic analyses. Taxol-bundled microtubules from rat brain crude extracts were seen as massive bundles by electr...

Bundling has been extensively studied in the literature and its benefits have been manifested through three perspectives of achieving better price discrimination, helping to save costs, and preserving the power for deterring a potential entrant. In this study, we examine two aspects of bundling which have not been studied before. We examine the impact of product heterogeneity on bundling decisi...

We incorporate marginal cost savings from bundling, fixed costs of product offerings, and variation in customer preferences into a model of bundling and tying. To focus on cost effects, we assume perfectly contestable markets and analyze sustainable product offerings. Pure bundling can arise either because few people demand only one component or because, with high fixed costs, a single product ...

This paper proposes a framework for studying competitive mixed bundling with an arbitrary number of firms. We examine both firm's incentive to introduce and equilibrium tariffs when all firms adopt the mixed-bundling strategy. In duopoly case, relative separate sales, has ambiguous impacts on prices, profit consumer surplus; many firms, however, typically lowers harms benefits consumers.

We investigate monopoly profit under a new online tying strategy, namely sequential bundling. This method allows customers to buy additional products at discounted prices immediately after purchasing one or some of the available products. strategy has been practiced by Walmart and others but not modelled date. use microeconomics analysis conduct comparison gained with three commonly used bundli...

A standard oligopoly model of bundling shows that bundling by a firm with a monopoly over one product has a strategic effect because it changes the substitution relationships between the goods among which consumers choose. Bundling in appropriate proportions is privately profitable, reduces rivals’ profits and overall welfare, and may drive rivals from the market.  1999 Elsevier Science S.A. A...

Retailer-Driven Product Bundling in a Distribution Channel This paper studies product bundling in a distribution channel where a downstream retailer combines component goods produced by separate manufacturers acting independently. Past literature offers deep insights about bundling by a single firm whose unit costs are not impacted by choice of selling strategy. But, when the retailer bundles g...

We consider a seller who owns two capacity constrained resources and markets two products (components) corresponding to these resources as well as a bundle comprising the two components. In an environment where all customers agree that one of the two components is of higher quality than the other and that the bundle is of the highest quality, we derive the seller’s optimal bundling strategy. We...