When Is Pure Bundling Optimal?

• Nima Haghpanah ^[1] ; Jason Hartline ^[2]
  1. [1] Pennsylvania State University

     Pennsylvania State University

     Borough of State College, Estados Unidos

     
  2. [2] Northwestern University

     Northwestern University

     Township of Evanston, Estados Unidos

     
• Localización: Review of economic studies, ISSN 0034-6527, Vol. 88, Nº 3, 2021, págs. 1127-1156
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • We study when pure bundling, i.e., offering only the grand bundle of all products, is optimal for a multi-product monopolist. Pure bundling is optimal if consumers with higher values for the grand bundle have higher relative values for smaller bundles compared to the grand bundle. Conversely, pure bundling is not optimal if consumers with higher values for the grand bundle have lower relative values. We prove the results by decomposing the problem into simpler ones in which types can be ranked according to their values for the grand bundle.