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To Bundle or Not to Bundle

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Author Info
Fang, Hanming
Norman, Peter

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Abstract

Comparing monopoly bundling with separate sales is relatively straightforward in an environment with a large number of goods. In this paper we show that results that are similar to the asymptotic results can be obtained in the more realistic case with a given finite number of goods provided that the distributions of valuations are symmetric and log-concave.

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File URL: http://microeconomics.ca/peter_norman/tobundlejune2005c.pdf
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Publisher Info
Paper provided by Microeconomics.ca Website in its series Micro Theory Working Papers with number norman-05-06-10-08-19-02.

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Length: 24 pages
Date of creation: 10 Jun 2005
Date of revision: 10 Jun 2005
Handle: RePEc:ubc:pmicro:norman-05-06-10-08-19-02

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Related research
Keywords: Monopoly Pricing; Bundling; Peakedness;

Other versions of this item:

Find related papers by JEL classification:
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Fang, Hanming & Norman, Peter, 2004. "An Efficiency Rationale for Bundling of Public Goods," Micro Theory Working Papers norman-04-11-21-09-39-13, Microeconomics.ca Website, revised 08 Feb 2005. [Downloadable!]
    Other versions:
  2. Armstrong, Mark, 1996. "Multiproduct Nonlinear Pricing," Econometrica, Econometric Society, vol. 64(1), pages 51-75, January. [Downloadable!] (restricted)
  3. Armstrong, Mark, 1999. "Price Discrimination by a Many-Product Firm," Review of Economic Studies, Blackwell Publishing, vol. 66(1), pages 151-68, January. [Downloadable!] (restricted)
    Other versions:
  4. Barry Nalebuff, 2004. "Bundling as an Entry Barrier," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 159-187, February. [Downloadable!] (restricted)
  5. Bagnoli, M. & Bergstrom, T., 1989. "Log-Concave Probability And Its Applications," Papers 89-23, Michigan - Center for Research on Economic & Social Theory.
    Other versions:
  6. Hanming Fang & Peter Norman, 2003. "To Bundle or Not to Bundle," Cowles Foundation Discussion Papers 1440, Cowles Foundation, Yale University. [Downloadable!]
    Other versions:
  7. Adams, William James & Yellen, Janet L, 1976. "Commodity Bundling and the Burden of Monopoly," The Quarterly Journal of Economics, MIT Press, vol. 90(3), pages 475-98, August. [Downloadable!] (restricted)
  8. repec:att:wimass:1920319 is not listed on IDEAS
  9. Jean-Charles Rochet & Philippe Chone, 1998. "Ironing, Sweeping, and Multidimensional Screening," Econometrica, Econometric Society, vol. 66(4), pages 783-826, July.
  10. Riley, John & Zeckhauser, Richard, 1983. "Optimal Selling Strategies: When to Haggle, When to Hold Firm," The Quarterly Journal of Economics, MIT Press, vol. 98(2), pages 267-89, May. [Downloadable!] (restricted)
  11. Schmalensee, Richard, 1984. "Gaussian Demand and Commodity Bundling," Journal of Business, University of Chicago Press, vol. 57(1), pages S211-30, January. [Downloadable!] (restricted)
  12. McAfee, R Preston & McMillan, John & Whinston, Michael D, 1989. "Multiproduct Monopoly, Commodity Bundling, and Correlation of Values," The Quarterly Journal of Economics, MIT Press, vol. 104(2), pages 371-83, May. [Downloadable!] (restricted)
  13. repec:att:wimass:1920318 is not listed on IDEAS
  14. Gregory Crawford, 2008. "The discriminatory incentives to bundle in the cable television industry," Quantitative Marketing and Economics, Springer, vol. 6(1), pages 41-78, March. [Downloadable!] (restricted)
  15. An, Mark Yuying, 1998. "Logconcavity versus Logconvexity: A Complete Characterization," Journal of Economic Theory, Elsevier, vol. 80(2), pages 350-369, June. [Downloadable!] (restricted)
    Other versions:
  16. Yannis Bakos & Erik Brynjolfsson, 1997. "Bundling Information Goods: Pricing, Profits and Efficiency," Working Paper Series 199, MIT Center for Coordination Science. [Downloadable!]
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Hanming Fang & Peter Norman, 2008. "Optimal Provision of Multiple Excludable Public Goods," NBER Working Papers 13797, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Christoph Engel, 2007. "Competition in a Pure World of Internet Telephony," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2007_1, Max Planck Institute for Research on Collective Goods. [Downloadable!]
  3. Chenghuan Sean Chu & Phillip Leslie & Alan Sorensen, 2008. "Nearly Optimal Pricing for Multiproduct Firms," NBER Working Papers 13916, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Rustam Ibragimov, 2004. "Shifting paradigms: on the robustness of economic models to heavy-tailedness assumptions," Econometric Society 2004 Latin American Meetings 105, Econometric Society. [Downloadable!]
  5. Fang, Hanming & Norman, Peter, 2005. "To Bundle or Not to Bundle," Micro Theory Working Papers norman-05-06-10-08-19-02, Microeconomics.ca Website, revised 10 Jun 2005. [Downloadable!]
    Other versions:
  6. Mark Bagnoli & Ted Bergstrom, 2004. "Log-concave Probability and its Applications," University of California at Santa Barbara, Economics Working Paper Series 1989D, Department of Economics, UC Santa Barbara. [Downloadable!]
    Other versions:
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