This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Review: Insights
  4. Forthcoming Articles
  5. A Characterization for Optimal Bundling of Products with Non-Additive Values

A Characterization for Optimal Bundling of Products with Non-Additive Values

Abstract

This paper studies the 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 nonlinear pricing.

Forthcoming Article Downloads