A Characterization for Optimal Bundling of Products with Non-Additive Values
General Economics
2022-04-22 v3 Economics
Abstract
This paper studies optimal bundling of products with non-additive values. Under monotonic preferences and single-peaked profits, I show a monopolist finds pure bundling optimal if and only if the optimal sales volume for the grand bundle is larger than the optimal sales volume for any smaller bundle. I then (i) detail how my analysis relates to "ratio monotonicity" results on bundling; and (ii) describe the implications for non-linear pricing.
Keywords
Cite
@article{arxiv.2101.11532,
title = {A Characterization for Optimal Bundling of Products with Non-Additive Values},
author = {Soheil Ghili},
journal= {arXiv preprint arXiv:2101.11532},
year = {2022}
}