Price Bundling in Competitive Markets : Complements , Substitutes , and Correlated Values
نویسندگان
چکیده
This research investigates how customer values for products influence mixed bundling strategies in competitive markets. Sellers set single item and bundle prices for buyers who are either comparison shoppers or who visit a single seller. We characterize the equilibrium condition for an oligopolistic model of bundling. We examine two features of distributions of customer values: additivity and correlations. For specific parameters of the model we compute solutions undominated by monopoly prices. Two experiments investigate bundling strategies by human decision makers: Experiment 1 studies markets for products that are complements or substitutes, by manipulating the additivity of customer valuations. Experiment 2 studies markets for products in which customer valuations of products are positively or negatively correlated. Across all conditions subject sellers actively engage in mixed bundling and we observe a systematic bias as human decision makers overemphasize comparison shoppers rather than acting as monopolists to buyers who do not comparison shop.
منابع مشابه
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