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| Author: | Dewan, R.M. Freimer, M.L. |
| Title: | Consumers prefer bundled add-ins |
| Journal: | Journal of Management Information Systems
2003 : FALL, VOL. 20:2, p. 99-111 |
| Index terms: | Bundling Information technology Software |
| Language: | eng |
| Abstract: | Software often serves as a base for a number of third-party add-in products or plug-ins. The impact of bundling of add-ins into the base software on the profits of the base software producer and the consumer depends on the proportion of consumers that value the add-in and the penalty that some consumers incur from finding only a bundled product available when they do not desire the add-in. A model of the market is used to show that the price of the bundle will be less than the sum of the prices of the base and add-in software when they are sold separately. |
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