Under a subscriber-supported television, specification should be viewed as a multidimensional problem. First, there is the traditional question how to allocate a number of channels -carried either by cable or satellite- among different program types. Second, there is the issue of packaging. What is the number of distinct bundles a profit maximising cable or satellite operator will let subscribers choose from, and what is the optimal composition of each package, i.e., how many channels devoted to each particular type of programming shoudl each bundle contain. The paper throws a bridge between the literature on bundling and the literature on product specification by focusing on the question how specifications are chosen when the seller determines whether to engage in pure or mixed bundling.
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Paper provided by Toulouse - GREMAQ in its series Papers with number
98.495.