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.
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