Wednesday, July 3, 2013

Newspaper and Magazine Move to Bundling

In Industry Analysis and Managerial Economics I talk about the pros and cons of pure bundling and mixed bundling, showing that pure and mixed bundling can increase profits for the firm as a means of capturing consumer surplus - which is similar to price discrimination.  The Wall Street Journal has a nice article on just this type of product strategy for newspapers and magazines when selling their content in print and on-line.

No comments: