Replication data for: Bundle-Size Pricing as an Approximation to Mixed Bundling

Principal Investigator(s): View help for Principal Investigator(s) Chenghuan Sean Chu; Phillip Leslie; Alan Sorensen

Version: View help for Version V1

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data_notes			10/11/2019 03:11:PM
LICENSE.txt	text/plain	14.6 KB	10/11/2019 11:11:AM

Project Citation:

Chu, Chenghuan Sean, Leslie, Phillip, and Sorensen, Alan. Replication data for: Bundle-Size Pricing as an Approximation to Mixed Bundling. Nashville, TN: American Economic Association [publisher], 2011. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112397V1

Project Description

Summary: Multiproduct firms can set separate prices for all possible bundled combinations of its products "mixed bundling"). However, this is impractical for firms with more than a few products, because the number of prices increases exponentially with the number of products. We find that simple pricing strategies are often nearly optimal. Specifically, we show that bundle-size pricing—setting prices that depend only on the size of bundle purchased—tends to be more profitable than offering the individual products priced separately and tends to closely approximate the profits from mixed bundling. (JEL D24, D42, L11, L13, L25)

Scope of Project

JEL Classification:
      D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
      D42 Market Structure, Pricing, and Design: Monopoly
      L11 Production, Pricing, and Market Structure; Size Distribution of Firms
      L13 Oligopoly and Other Imperfect Markets
      L25 Firm Performance: Size, Diversification, and Scope

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V1 [2019-10-11]

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