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Nearly Optimal Pricing for Multiproduct Firms

Author

Listed:
  • Chenghuan Sean Chu
  • Phillip Leslie
  • Alan Sorensen

    () (Graduate School of Business Stanford University)

Abstract

We examine pricing strategies for a multiproduct monopolist. We show that simple quantity discounting strategies are almost as profitable as fully optimal bundling. We investigate this in an empirical example, using data from a theater company

Suggested Citation

  • Chenghuan Sean Chu & Phillip Leslie & Alan Sorensen, 2006. "Nearly Optimal Pricing for Multiproduct Firms," 2006 Meeting Papers 830, Society for Economic Dynamics.
  • Handle: RePEc:red:sed006:830
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    References listed on IDEAS

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    Cited by:

    1. Katherine Ho & Justin Ho & Julie Holland Mortimer, 2012. "The Use of Full-Line Forcing Contracts in the Video Rental Industry," American Economic Review, American Economic Association, vol. 102(2), pages 686-719, April.
    2. Shi, Guanming & Chavas, Jean-Paul & Stiegert, Kyle, 2008. "An Analysis of Bundle Pricing: The Case of the Corn Seed Market," Staff Paper Series 529, University of Wisconsin, Agricultural and Applied Economics.
    3. Suen, Richard M.H., 2013. "Research Policy and U.S. Economic Growth," MPRA Paper 49103, University Library of Munich, Germany.

    More about this item

    Keywords

    Bundling; Price Discrimination;

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition

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