Profitability of Product Bundling

B-Tier
Journal: International Economic Review
Year: 2013
Volume: 54
Issue: 1
Pages: 35-57

Authors (2)

Yongmin Chen (University of Colorado) Michael H. Riordan (not in RePEc)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using copulas to model the stochastic dependence of values, this article establishes new general conditions for the profitability of product bundling. A multiproduct monopolist generally achieves higher profit from mixed bundling than from separate selling if consumer values for two of its products are negatively dependent, are independent, or have sufficiently limited positive dependence. The profitability of monopoly bundling also extends to situations where a multiproduct firm competes with a single‐product rival.

Technical Details

RePEc Handle
repec:wly:iecrev:v:54:y:2013:i:1:p:35-57
Journal Field
General
Author Count
2
Added to Database
2026-01-25