AbstractThis paper extends W. J. Adams and J. L. Yellen's (1976) well-known mixed-bundling pricing model by examining the case of sellers pricing bundles of goods or services at a premium relative to the prices charged on bundle components; that is, sellers price discriminate by charging more, rather than less, at the margin for bundles relative to components. The analysis demonstrates that sellers can, and perhaps do, employ premium bundling by the skillful use of cents-off coupons, rebates, or direct knowledge of their customers. Copyright 1991 by Oxford University Press.
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Bibliographic InfoArticle provided by Western Economic Association International in its journal Economic Inquiry.
Volume (Year): 29 (1991)
Issue (Month): 1 (January)
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- A. Mantovani & J. Vandekerckhove, 2012.
"The strategic interplay between bundling and merging in complementary markets,"
wp814, Dipartimento Scienze Economiche, Universita' di Bologna.
- Andrea Mantovani & Jan Vandekerckhove, 2012. "The strategic interplay between bundling and merging in complementary markets," Working Papers 2012/10, Institut d'Economia de Barcelona (IEB).
- Andrea Mantovani, 2013.
"The Strategic Effect of Bundling: A New Perspective,"
Review of Industrial Organization,
Springer, vol. 42(1), pages 25-43, February.
- A. Mantovani, 2010. "The strategic effect of bundling: a new perspective," Working Papers 705, Dipartimento Scienze Economiche, Universita' di Bologna.
- Uri Ben-Zion & Aharon Hibshoosh & Uriel Spiegel, 2000. "Price Discrimination by Coupons Restriction," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 7(3), pages 325-331.
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