The Benefits of Bundling Strategies

@article{Olderog2000TheBO,
  title={The Benefits of Bundling Strategies},
  author={Torsten Olderog and B. Skiera},
  journal={Schmalenbach Business Review},
  year={2000},
  volume={52},
  pages={137-159}
}
This paper analyzes the effects of three bundling strategies — unbundling, mixed bundling, and pure bundling — on profit and sales, using a simulation study based on a model by Schmalensee (1984). The analysis shows under what conditions which strategy is the most profitable, how large the profit and sales differentials are for each strategy, and what characteristics the corresponding price structures have. Based on our results, we explain the differences observed in the study and derive a set… Expand
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  • Peter Buxmann
  • Computer Science, Business
  • Proceedings from the 2nd IEEE Conference on Standardization and Innovation in Information Technology (Cat. No.01EX530)
  • 2001
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Abstract The Adams-Yellen two good bundling framework is generalized to allow the goods to be substitutes or complements. General theorems on price change effects are given. A monopolist may find itExpand
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Bundle pricing is a widespread phenomenon. However, despite its importance as a pricing tool, surprisingly little is known about how to find optimal bundle prices. Most discussions in the literatureExpand
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