The Benefits of Bundling Strategies
Year: 2002
Type: preprint
Abstract: This paper analyzes the effects of three bundling strategies - unbundling, mixed bundling, and pure bundling - on profit and sales, using a simulation study based on a model by Schmalensee (1984). The analysis shows under what conditions which strategy is the most profitable, how large the profit and sales differentials are for each strategy, and what characteristics the corresponding price structures have. Based on our results, we explain the differences observed in the study and derive a set of implications for practical price structuring.
Source: SSRN Electronic Journal
Authors: Bernd Skiera, Torsten Olderog
Institutions: Goethe University Frankfurt, AKAD University
Language: English
Subfield: Marketing
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1497419233