Pure vs. mixed commodity bundling

  title={Pure vs. mixed commodity bundling},
  author={Brooks Pierce and Harold Winter},
  journal={Review of Industrial Organization},
In the commodity bundling literature, pure bundling is ruled out as a uniquely optimal strategy because mixed bundling is always (weakly) better. This paper provides a theoretical distinction between the two pricing schemes. The distinction relies on the degree of consumer heterogeneity in reservation prices. While there is a lack of empirical evidence on commodity bundling pricing schemes due to the difficulties in measuring consumer heterogeneity, we circumvent this problem by examining firm… 
Option Package Bundling
This paper analyzes the optimality of package bundling by focusing on the ?main and accessory?relationship between two goods. In particular, we consider option package bundling in which an optional
Online sequential bundling: profit analysis and practice
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
Pricing bundled information goods
  • K. Altinkemer, J. Jaisingh
  • Economics
    Proceedings Fourth IEEE International Workshop on Advanced Issues of E-Commerce and Web-Based Information Systems (WECWIS 2002)
  • 2002
Results suggest that a profit-maximizing firm should offer only the largest bundle, containing all the information Goods, when the marginal cost of the physical good was low (high).
Pricing Strategies of Unbundling and Mixed-Bundling in a Two-Sided Market Under Stochastic Demand
We investigate the pricing strategies of unbundling and mixed-bundling for a firm that produces both a product and a compatible integrated content, respectively. The firm can be viewed as a two-sid...
A Welfare Evaluation of Tying Strategies
We compare monopoly profit, consumer surplus, and total welfare associated with three commonly used tying strategies: no tying, pure tying, and mixed tying. Whereas the previous literature focused
Strategic Bundling of Products and Prices: A New Synthesis for Marketing
Bundling is pervasive in today's markets. However, the bundling literature contains inconsistencies in the use of terms and ambiguity about basic principles underlying the phenomenon. The literature
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This study analyzes the determinants of product boundary choice as discriminatory pricing. Specifically, we consider a model where a monopolist sells a base product with an add-on valuable only if it


Commodity Bundling and the Burden of Monopoly
I. Introduction, 475.—II. The model: positive properties, 477.—III. The model: normative properties, 490.—IV. Implications and conclusion, 495.
FOR VARIOUS REASONS, data availability being not the least of these, empirical studies of production processes can often be carried out more conveniently in terms of cost functions instead of
Multiproduct Monopoly, Commodity Bundling, and Correlation of Values
Through what selling strategy can a multiproduct monopolist maximize his profits when his knowledge about individual consumers' preferences is limited? One possibility, extensively studied in the