Optimal Customized Bundle Pricing for Information Goods

  title={Optimal Customized Bundle Pricing for Information Goods},
  author={Shin-yi Wu},
In this paper, we provide a model for choosing the optimal number of bundles and their prices in the context of designing markets for information goods. Selling bundled goods is a widespread phenomenon, and a recent paper by Bakos and Brynjolfsson (1999) showed that under conditions of zero marginal cost, and independent and identically distributed customer valuations, pure bundling is optimal for a multi-product monopolist. In this paper, we show, using a nonlinear programming framework and… CONTINUE READING