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| Author: | Simon, H. Fassnacht, M. |
| Title: | Price bundling. |
| Journal: | European Management Journal
1993 : DEC, VOL. 11:4, p. 403-411 |
| Index terms: | PROFIT MULTIPRODUCT COMPANIES ANTITRUST CUSTOMERS |
| Language: | eng |
| Abstract: | Price bundling is a potentially powerful method to exploit profit potentials and to maximize profits in any multiproduct company. In this presentation of the technique, the authors explain that the heterogeneity of demand is reduced and customers' willingness to pay is used to the company's advantage. Profit increases are likely to be in the range of 10 to 30 %. Antitrust aspects should be observed, particularly if the company is in a dominant market position. Competitive dynamics may make unbundling necessary. |
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