|
|
|
|
|
by Dwolb
4153 days ago
|
|
Interesting. From a microeconomics perspective, bundling is a form of price discrimination which is optimal for situations where the seller has multiple products, but buyers' wants are negatively correlated. e.g. Roger sells both candy bars and packs of gum, both of which cost him $0 to produce (for simplicity). Al is willing to pay $5 for a candy bar, but $1 for a pack of gum. Jesse willing to pay $1 for a candy bar and $5 for a pack of gum. Roger could sell one candy bar to Al for $5 and one pack of gum to Jesse for $5 for a total profit of $10. More optimally, Roger could sell a bundle consisting of both the candy bar and the pack of gum to both Al and Jesse for $6 for a total profit of $12. Bundling has optimally increased Roger's profits. |
|