Optimal Bundling and Pricing under a Monopoly: Contrasting Complements and Substitutes from Independently Valued Products
Publication
, Journal Article
Venkatesh, R; Kamakura, W
Published in: Journal of Business
April 1, 2003
We develop an analytical model of contingent valuations and address two questions of import to a monopolist: (i) should a given pair of complements or substitutes be sold separately (pure components), together (pure bundling), or both (mixed bundling), and at what prices? (ii) How do optimal bundling and pricing strategies for complements and substitutes differ from those for independently valued products? We find that the combination of marginal cost levels and the degree of complementarity or substitutability determines which of the three bundling strategies is optimal. Complements and substitutes should typically be priced higher than independently valued products.
Published In
Journal of Business
DOI
ISSN
0021-9398
Publication Date
April 1, 2003
Volume
76
Issue
2
Start / End Page
211 / 231
Related Subject Headings
- Finance
Citation
APA
Chicago
ICMJE
MLA
NLM
Venkatesh, R., & Kamakura, W. (2003). Optimal Bundling and Pricing under a Monopoly: Contrasting Complements and Substitutes from Independently Valued Products. Journal of Business, 76(2), 211–231. https://doi.org/10.1086/367748
Venkatesh, R., and W. Kamakura. “Optimal Bundling and Pricing under a Monopoly: Contrasting Complements and Substitutes from Independently Valued Products.” Journal of Business 76, no. 2 (April 1, 2003): 211–31. https://doi.org/10.1086/367748.
Venkatesh R, Kamakura W. Optimal Bundling and Pricing under a Monopoly: Contrasting Complements and Substitutes from Independently Valued Products. Journal of Business. 2003 Apr 1;76(2):211–31.
Venkatesh, R., and W. Kamakura. “Optimal Bundling and Pricing under a Monopoly: Contrasting Complements and Substitutes from Independently Valued Products.” Journal of Business, vol. 76, no. 2, Apr. 2003, pp. 211–31. Scopus, doi:10.1086/367748.
Venkatesh R, Kamakura W. Optimal Bundling and Pricing under a Monopoly: Contrasting Complements and Substitutes from Independently Valued Products. Journal of Business. 2003 Apr 1;76(2):211–231.
Published In
Journal of Business
DOI
ISSN
0021-9398
Publication Date
April 1, 2003
Volume
76
Issue
2
Start / End Page
211 / 231
Related Subject Headings
- Finance