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… 
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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
TLDR
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).
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