Product bundling and shared information goods: A pricing exercise. Issue 1 (2nd January 2016)

• Record Type: Journal Article
• Authors: Morrison, William G.
• Is Part Of: Journal of economic education. Volume 47:Issue 1(2016)
• Page Start: 49
• Page End: 63
• Publication Date: 2016-01-02
• Subjects: Bundling -- pricing -- shared information goods; A2; Economics -- Study and teaching -- United States -- Periodicals; 330.071
• DOI: 10.1080/00220485.2015.1106360
• Languages: English
• ISSNs: 0022-0485

Abstract

Abstract: In this article, the author describes an exercise in which two pricing problems (product bundling and the sharing of digital information goods) can be understood using the same analytical approach. The exercise allows students to calculate the correct numerical answers with relative ease, while the teaching plan demonstrates the importance of the distribution of reservation prices across consumers in determining the optimal pricing strategies.