Article2005

Bundling Information Goods of Decreasing Value

Xianjun Geng · Maxwell B. Stinchcombe · Andrew B. Whinston

170 citations0/0 files storedManagement Science

No readable copy stored yet — this record is metadata only.

Consumer Market Behavior and Pricing Supply Chain and Inventory Management Digital Platforms and Economics

Abstract

Consumers’ average value for information goods, websites, weather forecasts, music, and news declines with the number consumed. This paper provides simple guidelines to optimal bundling marketing strategies in this case. If consumers’ values do not decrease too quickly, we show that bundling is approximately optimal. If consumers’ values to subsequent goods decrease quickly, we show by example that one should expect bundling to be suboptimal.

Citations in this library

Stored only when both papers are in the corpus — 170 citations exist upstream.

References

1976Commodity Bundling and the Burden of Monopoly 1999Bundling Information Goods: Pricing, Profits, and Efficiency 1989Multiproduct Monopoly, Commodity Bundling, and Correlation of Values 1984Gaussian Demand and Commodity Bundling 2000Bundling and Competition on the Internet 1996Multiproduct Nonlinear Pricing 2005Copying and Copyright 1999Price Discrimination by a Many-Product Firm

Cited by

2012First-Party Content and Coordination in Two-Sided Markets 2007Comparison of Software Quality Under Perpetual Licensing and Software as a Service 2011Bundle-Size Pricing as an Approximation to Mixed Bundling 2006To bundle or not to bundle 2012Add-on Pricing by Asymmetric Firms 2013Operations Research (OR) in Service Industries: A Comprehensive Review 2011Music for a Song: An Empirical Look at Uniform Pricing and Its Alternatives

Imported from OpenAlex (CC0) — nothing here is generated.