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The axiomatic approach to the problem of sharing the revenue from bundled pricing

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  • Gustavo Bergantiños

    ()
    (Research Group in Economic Analysis, Universidade de Vigo)

  • Juan D. Moreno-Ternero

    ()
    (Department of Economics, Universidad Pablo de Olavide; CORE, Université catholique de Louvain)

Abstract

We explore in this paper the axiomatic approach to the problem of sharing the revenue from bundled pricing. We formalize two models for this problem on the grounds of two different informational bases. In both models, we provide axiomatic rationale for natural rules to solve the problem. We, nonetheless, obtain drastic differences under each scenario, which highlights the importance of setting the appropriate informational basis of the problem.

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Bibliographic Info

Paper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 13.04.

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Length: 25 pages
Date of creation: Sep 2013
Date of revision:
Handle: RePEc:pab:wpaper:13.04

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Keywords: resource allocation; bundled pricing; museum passes; proportional; axioms;

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  1. William Thomson, 2001. "On the axiomatic method and its recent applications to game theory and resource allocation," Social Choice and Welfare, Springer, vol. 18(2), pages 327-386.
  2. Casas-Méndez, Balbina & Fragnelli, Vito & García-Jurado, Ignacio, 2011. "Weighted bankruptcy rules and the museum pass problem," European Journal of Operational Research, Elsevier, vol. 215(1), pages 161-168, November.
  3. Victor Ginsburgh & ISRAEL Zang, 2003. "The museum pass game and its value," ULB Institutional Repository 2013/1683, ULB -- Universite Libre de Bruxelles.
  4. M. Angeles de Frutos, 1999. "Coalitional manipulations in a bankruptcy problem," Review of Economic Design, Springer, vol. 4(3), pages 255-272.
  5. Arantza Estévez-Fernández & Peter Borm & Herbert Hamers, 2012. "A Note On Passepartout Problems," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 14(02), pages 1250013-1-1.
  6. Adams, William James & Yellen, Janet L, 1976. "Commodity Bundling and the Burden of Monopoly," The Quarterly Journal of Economics, MIT Press, vol. 90(3), pages 475-98, August.
  7. Thomson, William, 2003. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: a survey," Mathematical Social Sciences, Elsevier, vol. 45(3), pages 249-297, July.
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