Pure vs. mixed commodity bundling

@article{Pierce1996PureVM,
  title={Pure vs. mixed commodity bundling},
  author={Brooks Pierce and Harold Winter},
  journal={Review of Industrial Organization},
  year={1996},
  volume={11},
  pages={811-821}
}
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… Expand
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