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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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    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 W., 2008. "An Analysis of Bundle Pricing: The Case of the Corn Seed Market," Staff Papers 92212, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    3. John C. Eckalbar, 2010. "Closed‐Form Solutions to Bundling Problems," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(2), pages 513-544, June.
    4. Kevin K. Wang & Michael D. Wittman & Thomas Fiig, 2023. "Dynamic offer creation for airline ancillaries using a Markov chain choice model," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(2), pages 103-121, April.
    5. Suen, Richard M.H., 2013. "Research Policy and U.S. Economic Growth," MPRA Paper 49103, University Library of Munich, Germany.

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    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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