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Author: | Olderog, T. Skiera, B. |
Title: | The benefits of bundling strategies |
Journal: | Schmalenbachs Zeitschrift für Betriebswirtschaftliche Forschung
2000 : APR, VOL. 52:2, p. 137-159 |
Index terms: | Strategy Profit Sales Models |
Language: | eng |
Abstract: | This paper analyzes the effects of three bundling strategies, i.e. 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, there are explained the differences observed in the study. Also, derived is a set of implications for practical price structuring. |
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