Bundling with Customer Self-Selection: A Simple Approach to Bundling Low-Marginal-Cost Goods

Bundling with Customer Self-Selection: A Simple Approach to Bundling Low-Marginal-Cost Goods

The reduction in distribution costs of digital products has renewed interest in strategies for pricing goods with low marginal costs. In this paper, we evaluate the concept of customized bundling in which consumers can choose up to a quantity M of goods drawn from a larger pool of N different goods (N>M) for a fixed price. We show that the complex mixed bundle problem can be reduced to the cust...

Bundling with Customer Self-Selection: A Simple Approach to Bundling Low Marginal Cost Goods On-Line Appendix

Bundling in exchange markets with indivisible goods∗

We study efficient and individually rational exchange rules for markets with heterogeneous indivisible goods that exclude the possibility that an agent benefits by bundling goods in her endowment. Even if agents’ preferences are additive, no such rule exists. JEL Classification: C71, D63, D71.

A Case for Bundling Public Goods Contributions?∗

We extend the model of voluntary contributions to multiple public goods by allowing for bundling of the public goods. Specifically, we study the case where agents contribute into a common pool which is then allocated towards the financing of two pure public goods. We explore the welfare implications of allowing for such bundling vis-a-vis a separate contributions scheme. We show that when agent...

Automated Negotiation and Bundling of Information Goods

In this paper, we present a novel system for selling bundles of news items. Through the system, customers bargain with the seller over the price and quality of the delivered goods. The advantage of the developed system is that it allows for a high degree of flexibility in the price, quality, and content of the offered bundles. The price, quality, and content of the delivered goods may, for exam...