Bundling Assignment

Bundling Assignment

Should it use mixed bundling. i.e., sells products both separately and as a bundle?

Your answer must include the profit with mixed bundling.

20181026023101eco_q9 (1) (1)

 

 

 

Solution Preview

Mixed bundling provides the opportunity for customers to acquire the intended goods either wholly as a bundle or even separately (McAfee, Preeston., McMillan, & Whinston, 1989). For Time Warner to apply the mixed bundling strategy, it means that their customers will have a reservation price that is greater than the real cost for the services, 

(265 words)

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