To Bundle or Not to Bundle
Commodity bundling is studied in an environment where the dispersion of valuations unambiguously decreases when two or more goods are sold as a bundle only. Bundling is more likely to dominate separately selling the goods if marginal costs are low relative to the average valuation, or if the distribution of valuations is very peaked around the mean.
|Date of creation:||Oct 2003|
|Date of revision:|
|Publication status:||Published in Rand Journal of Economics (Winter 2006), 37(4): 946-963|
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